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European central banks keep rates intact

Jan. 12, 2012 at 12:20 PM

FRANKFURT, Germany, Jan. 12 (UPI) -- The European Central Bank and the Bank of England both left monetary policy unchanged Thursday, the banks said in separate announcements.

The ECB left its key interest rate at 1 percent, while the BOE maintained its 0.5 percent rate for overnight lending.

ECB President Mario Draghi said the 1 percent rate was left alone as data received in December "broadly confirms our previous assessment -- inflation is likely to stay above 2 percent for several months."

The eurozone economy, he said, shows "tentative signs of stabilization in activity at low levels."

He also said a recovery for the sluggish economy would be very gradual, due to "moderate global demand growth and weak business and consumer confidence in the euro area."

The BOE does not explain its monetary decisions until three weeks after their meetings with a release of meeting minutes.

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