Brussels, 02/09/2010 (Agence Europe) - On Thursday 2 September, the European Central Bank (ECB) decided to keep eurozone interest rates unchanged. The key refinancing rate of interest will remain at 1% and the marginal lending facility and deposit facility also, at 1.75% and 0.25% respectively. Although the improvement in the economic situation is confirmed (mainly due to temporary factors), the ECB believes there is still uncertainty, said Jean-Claude Trichet after the meeting of the Governing Council.
Although the latest projections by ECB services have been reviewed upward (compared with June), recovery should be at a “moderate pace”, the bank's president said. According to figures revealed on Thursday, the rise in GDP should be between 1.4% and 1.8% in 2010 and between 0.5% and 2.3% in 2011. Inflation rates should also remain “moderate” over coming months, Trichet said, confirming a slight increase in his department's forecasts. Inflation should fall within a range of between 1.5% and 1.7% for 2010 and between 1.2% and 2.2% for 2011.
Concerned by the fragility of some banks, the ECB has, moreover, decided to extend its support measures in order to meet the eurozone's needs in liquidity. It has above all undertaken to provide unlimited one week and one month financing until 18 January. (A.B./transl.jl)