facebook
twitter
rss
account
search
search
 

ECB breaks ranks with rate hike

April 7, 2011 at 9:48 AM   |   Comments

FRANKFURT, Germany, April 7 (UPI) -- The European Central Bank broke ranks with other major central banks Thursday raising key lending rates to slow inflation.

The ECB raised its bank-to-bank overnight rates 25 basis points from a historically low 1 percent, the rate set during the recession, to 1.25 percent.

At a press conference in Frankfurt, Germany, Bank President Jean-Claude Trichet said, "Our decision will contribute to keeping inflation expectations in the euro area ... below, but close to, 2 percent over the medium term."

He said recent data showing 0.3 percent quarter-on-quarter economic growth in the eurozone -- the 17 nations that use the euro as currency -- "points toward a continued positive underlying momentum." Economic improvements, however, are set "in an environment of elevated uncertainty," he said.

He called the rate of economic growth "still moderate," but said there was "ample" liquidity in financial markets. Interest rates across the eurozone also "remain low," he said, "Thus the stance of monetary policy remains accommodating and thereby continues to lend considerable support to economic activity and job creation."

© 2011 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
GM recalls 221,000 Cadillacs and Impalas GM recalls 221,000 Cadillacs and Impalas
2
New National Security Cutter delivered to Coast Guard New National Security Cutter delivered to Coast Guard
3
First MT30 engine for Korean Navy frigates passes acceptance tests First MT30 engine for Korean Navy frigates passes acceptance tests
4
Ukraine's State Guard Service receives armored personnel carriers Ukraine's State Guard Service receives armored personnel carriers
5
Navy's Triton surveillance drone flies cross-country Navy's Triton surveillance drone flies cross-country
Trending News
Video
x
Feedback