ECB maintains interest rates

The recent turmoil on global financial markets on Thursday kept the European Central Bank from raising interest rates for the 13 countries in the eurozone. Instead, the ECB now seeks to reassure the international banking community by not increasing the cost of money. The bank's President, Jean-Claude Trichet said the ECB has not abandoned plans to raise interest rates. Credit credit growth in Europe remains strong. And risks of further prices rises are still on the upside. The recent volatile state of international markets, caused by the problems in the US mortgage market, clouds the outlook for the economic situation in Europe. That explains why the ECB wants to take more time before making its next move and raise rates. The main European interest rate on Thursday stayed unchanged at 4 percent.

Submission | September 6, 2007

Tags:. .still. .plans. .markets. .move. .rates