ECB Holds Rates at 1%

As expected, the European Central Bank (ECB) upheld the current 1% benchmark lending rate. This marks the 10th straight month that the ECB has maintained the record low rate. As many EU governments face the prospect of spending cuts to bring budgets back in line with EU requirements, inflation becomes less of a concern, making it less likely that the ECB will feel the pressure to increase the lending rate.

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