Brussels, 04/08/2005 (Agence Europe) - During the video-conference meeting held on 4 August, the ECB Governing Council decided that the minimum tendering rate applied to key refinancing operations would remain unchanged at 2%, like the marginal lending facility and the deposit facility, at 3% and 1% respectively. In the context of a fall in the euro's rate, the ECB considers the level of rates is sufficiently low and does not wish to refuel the rise in real-estate prices or the rise in liquidities or assets. Inflationary pressure remains contained in the short term, and several analysts do not expect ECB rates to change in 2005.
Also on 4 August, the Bank of England brought its key rate down by 25 points, to 4.25%. The Bank justified this monetary flexibility by the fact that the UK is going through an economic slow period, mainly for household and investment spending.
In the United States, the rate of Fed Funds had risen 3.25% end June and this trend should continue during the second half of the year.