Kamis, 05 September 2013

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Eurozone interest rates held at low

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The European Central Bank (ECB) has held interest rates at a historic low of 0.5% despite tentative signs that the eurozone is recovering.

The eurozone emerged from recession in the second quarter of this year, with growth of 0.3% recorded between April and June.

But there is still concern that many European economies remain in trouble.

In July, ECB president Mario Draghi said interest rates are likely to remain low for an "extended period".

It was the first time the central bank issued so-called forward guidance on interest rates, but the bank has not given any indication on how long an "extended period" might be.

That will in part depend on how European economies fare over the coming months.

In the second quarter of the year, Germany and France saw stronger-than-expected growth of 0.7% and 0.5%, respectively.

But weaker economies, including Spain, Italy, and the Netherlands, all saw output fall.



Source: BBC News - Business http://www.bbc.co.uk/news/business-23974260#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa