The Bank of England and the European Central Bank both announced that they would be holding the line on interest rates. In addition to keeping rates at 0.5 percent, the Bank of England also said it would not be expanding its quantitative easing program.
The European Central Bank will maintain the current rate of 1 percent which has been in effect for seventeen straight months. ECB President Trichet will provide a statement later today in which analysts will be looking for clarity on further spending plans and insight into the ECB’s thoughts on the recent appreciation of the euro against a weakening US dollar.
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