Eurozone interest rate held at 1%

The ECB kept rates unchanged at 1.00% in a decision that was expected by the majority of market participants. After Australia was the first G20 country to increase rates there was some speculation in what the European Central Bank might base its decision. The ECB has never been known for it rashness, and is the one most cautious of the world’s Central Banks.

ECB President Jean-Claude Trichet, said the eurozone was “stabilising” and was “expected to recover at a gradual pace” but that “uncertainty remains high”.

Earlier this week, revised figures showed eurozone economic activity shrank by 0.2% between April and June – worse than originally thought.

For more European Economic Indicators visit FXEconostats

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza