Thursday, February 7, 2008
European Central Bank seeks to bring surging inflation back within its target range
Eurozone interest rates have been left unchanged by the European Central Bank as it seeks to bring surging inflation back within its target range.The decision to leave its main policy rate at 4 per cent was widely-expected after eurozone inflation last month hit a 14-year high of 3.2 per cent. The ECB’s concerns that a temporary rise in price pressures could become longer-lasting are thought to have outweighed fears about growth. The ECB’s stance has contrasted sharply with the aggressive interest rate cuts announced by the US Federal Reserve.