The ECB kept rates unchanged at 1.00% in a decision that was expected by the majority of market participants. After Australia was the first G20 country to increase rates there was some speculation in what the European Central Bank might base its decision. The ECB has never been known for it rashness, and is the one most cautious of the world’s Central Banks.
ECB President Jean-Claude Trichet, said the eurozone was “stabilising” and was “expected to recover at a gradual pace” but that “uncertainty remains high”.
Earlier this week, revised figures showed eurozone economic activity shrank by 0.2% between April and June – worse than originally thought.
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