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European Central Bank leaves rates unchanged

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Published : 2014-01-09 21:55
Updated : 2014-01-09 21:55

The European Central Bank has left its key interest rate unchanged at a record low of 0.25 percent 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 percent in the third quarter. Inflation, at only 0.8 percent, remains below the ECB's goal of just under 2 percent and makes it harder for troubled countries such as Greece to reduce their debt levels. (AP)

 

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