The European Central Bank kept interest rates unchanged today at its first meeting this year as the smooth rollout of euro cash remained in the spotlight.
The decision to keep its benchmark rate at 3.25 per cent came as little surprise after repeated assurances by ECB President Mr Wim Duisenberg that interest rates were at a right level now to pave the way to economic recovery while keeping a lid on prices.
The ECB made no further comment on the decision but Mr Duisenberg is due to elaborate on it at a news conference starting at 2 p.m. (Irish Time).
It will be preceded by his joint briefing with EU economic commissioner Mr Pedro Solbes and Spain's Economy Minister Mr Rodrigo Rato, the new head of the Ecofin group of EU's economy and finance ministers, devoted to the euro cash launch.
A majority of economists in a Reuters poll last week said they expected the ECB to cut interest rates by at least a quarter-point as soon as February in response to receding inflation and ongoing economic weakness in the 12-nation zone.
The ECB also left its marginal lending and deposit facility rates, which make the corridor for money market rates, unchanged at 4.25 per cent and 2.25 per cent respectively.
The ECB also said that the envisaged allotment volume at its regular long-term refinancing operations in 2002 will be €20 billion.