ECB to leave interest rates unchanged

The European Central Bank (ECB) said today it will leave its leading interest rates unchanged at 3.25 per cent following a governing council meeting.

In the ECB’s last meeting before the introduction of euro notes and coins on January 1st, 2002, the bank said its main refinancing operations will continue to be conducted as variable rate tenders with a minimum bid rate of 3.25 per cent.

The deposit rate remains at 2.25 per cent and the rate on the marginal lending facility stays at 4.25 per cent.

Four weeks ago, the ECB lowered rates by a bigger-than-expected 50 basis points to their lowest level since February 2000.

Unlike the US Federal Reserve, which has made ten cuts this year, the ECB has reduced rates only four times.