Thursday 2 June 2016

Eurozone interest rates kept on hold

(Image: Getty)

The European Central Bank (ECB) kept its main interest rate unchanged in a widely expected decision.

The bank's governing council, meeting in Vienna, said it would hold its benchmark interest rate at 0%.

The deposit rate was also held at minus 0.4%.

Analysts had expected rates to remain unchanged after the bank announced new stimulus measures in March aimed at reviving economic growth in the eurozone.

As part of those measures, the ECB said it would start buying corporate bonds on 8 June as part of its €80bn monthly total. Those purchases have mainly been of government bonds until now.

The bank hopes the measures will help increase economic activity and bring the eurozone inflation rate closer to the bank's goal of just under 2%. The rate stands at minus 0.1%.

ECB president Mario Draghi will hold a news conference later, and there is speculation that he may raise growth and inflation forecasts for the eurozone.

The eurozone economy expanded by 0.5% in the first quarter, but unemployment remains persistently high at 10.2%.

Emmylite

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I am a music lover, producer, critic, social media expert and also the editor and author @ My Search Lyrics. Working @ DBliss Media. Follow Me Twitter @Emmylite

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