European Central Bank leaves rates unchanged

August 8th, 2008 - 2:33 pm ICT by IANS  

New Delhi, Aug 8 (IANS) The European Central Bank (ECB) - the central bank for the Eurozone currency area - has decided to leave its three key benchmark interest rates unchanged. The Frankfurt-based ECB has left its “minimum bid rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility” unchanged at 4.25 percent, 5.25 percent and 3.25 percent respectively, according to an ECB statement Thursday.

The move follows similar rate-stabilizing moves from the London-based Bank of England, the Tokyo-based Bank of Japan and the New York-based Federal Reserve Bank as central banks attempt to combat rising inflation by stabilizing interest rates.

India’s central bank, the Reserve Bank of India, however, had recently hiked two key parameters - the cash reserve ratio and the repo rate - in an attempt to suck out money from the system in an attempt to combat inflation.

Inflation in India continues to worry economy managers as weekly official figures released Thursday indicate unabated pressure on prices.

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