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ECB and BoE keep interest rates unchanged

ECB and BoE keep interest rates unchanged

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.

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