Europeans, Bank of England Leave Rates Unchanged
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FRANKFURT, Germany — The European Central Bank has kept its benchmark interest rate unchanged at 4.25% even as the 15 countries that use the euro face continued high inflation and fears of slowing growth.
Today’s decision mirrors similar moves by the Federal Reserve Bank and Bank of England this week. Markets will parse remarks by the ECB President, Jean-Claude Trichet, later when he speaks to reporters about the decision.
The European economy is slowing as soaring fuel and food prices slam the brakes on growth. It’s also suffering from tight borrowing conditions triggered by the global credit crisis and a slowdown in major trading partners, Britain, and America.
