Brussels, 08/10/2009 (Agence Europe) - The European Central Bank (ECB) has decided to leave eurozone interest rates unchanged. The main refinancing rate will therefore remain at 1.00%, the marginal loan facility 1.75% and the deposit facility 0.25%, explained Jean-Claude Trichet, the ECB's president, after a meeting of the bank's Governing Council in Venice on Thursday 8 October 2009.
At a press conference, Trichet explained that there had been signs of stabilisation since the second quarter of the year and the eurozone had emerged from the free fall that had hit the global economy, but uncertainty remained exceptionally high and it was important not to announce victory too soon. He said that the Governing Council's view of economic activity in the eurozone was very similar to its views a month ago. Inflationary pressure remains low so the current interest rates are appropriate, explained Trichet. After a fall in consumer prices in September (inflation of -0.3%, following -0.2% in August), consumer prices in the eurozone should start to rise 'in the coming months' while remaining moderate, he said.
As has become customary since July 2009, Jean-Claude Trichet set out what he believes is the right timetable for introducing strategies to correct public finance. He said that 'consolidation efforts should be stepped up in 2011 and will need to exceed significantly the benchmark of 0.5% of GDP per annum set in the Stability and Growth Pact.' 'In countries with high deficit and/or debt ratios, the annual structural adjustment should reach at least 1% of GDP.' (A.B. trans fl)