View the article online at http://citywire.co.uk/wealth-manager/article/a732651
ECB and BoE keep interest rates unchanged
by Danielle Levy on Feb 06, 2014 at 13:35
The European Central Bank (ECB) and Bank of England have left interest rates unchanged.
In the UK the nine-strong Monetary Policy Committee left interest rates at 0.5% and opted to keep gilt purchases at £375 billion. The Bank did not issue a statement alongside the decision, nor offer any insight into how it intends to amend 'forward guidance'.
On the continent, the ECB has kept interest rates unchanged at 0.25%.
The 24-strong governing council also left the deposit rate at zero, alongside the marginal lending rate at 0.75%.
The central bank, led by Mario Draghi (pictured) continues to expect inflation to rise from a four-year low towards the ECB's target of just under 2%.
However, January saw inflation fall to 0.7%, giving many cause for concern that deflation could take hold. The eurozone is also facing volatile global markets as the Federal Reserve starts to unwind its accomodative monetary policy.
News sponsored by:
As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.
Today's top headlines
From Nigeria to Pakistan and from Kenya to Kuwait, frontier markets are catching investors' attention as never before.
More about this:
On the road
on Jul 31, 2014 at 10:36