European banks hold to low interest rates

LONDON, Nov. 5 (UPI) -- The European Central Bank and the Bank of England followed U.S. policy makers Thursday, electing to keep bank lending rates unchanged.

The ECB said its key lending rate would remain at 1 percent.

The BOE said it would keep rates at the historic low of 0.5 percent.

On Wednesday, the U.S. Federal Reserve said it would maintain lending at zero to 0.25 percent "for an extended period." The Fed's Open Market Committee said signs of a recovery lacked the critical component of a stronger job market.

The BOE's Monetary Policy Committee said "global activity as a whole remains significantly depressed," in spite of signs the economy is doing better.

In Frankfurt, Germany, ECB President Jean-Claude Trichet said inflation was expected to "remain positive."

"The latest information continues to signal an improvement in economic activity," he said, pointing to "a gradual pace" for recovery in 2010.

However, "uncertainty remains high as a number of supporting factors are of a temporary nature," he said.