ECB leaves rates unchanged

The European Central Bank's council has decided to keep its key interest rate at 0.25 per cent.

The European Central Bank has left its key interest rate unchanged at a record low of 0.25 per cent despite concerns over a weak economy and low inflation.

The bank's rate council made the decision at its monthly policy meeting on Thursday.

Lower rates can help growth, but the ECB has little room left to cut.

Analysts think it may try other steps such as offering cheap loans to banks on the condition they loan that money to companies.

The eurozone economy grew only 0.1 per cent in the third quarter.

Inflation, at only 0.8 per cent, remains below the ECB's goal of just under 2 per cent and makes it harder for troubled countries such as Greece to reduce their debt levels.


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Source: AAP


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