European Central Bank not cutting rates

The European Central Bank has decided not to cut its main interest rate of four-point-seven-five per cent.

The rate has remained unchanged since October last year.

The decision comes despite recent cuts in rates by the United States and Japan, and concern that the downturn in the American economy is having a greater than expected effect on Europe.

The BBC business correspondent says that there is less immediate pressure on Europe's bankers to cut rates because economies in the euro zone the single European currency are generally in much better shape than either the US or Japan.

From the newsroom of the BBC World Service