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Last Updated: Thursday, 3 November 2005, 12:46 GMT
Eurozone rates stay put once more
Euro notes
Eurozone rates have stayed unchanged despite low growth
The European Central Bank (ECB) has decided to keep eurozone interest rates on hold at 2% for another month.

The move, widely expected by analysts, means the ECB has now kept rates at the same level since June 2003.

The Frankfurt-based bank faces conflicting pressures on interest rates with calls for both a rise and a cut.

Weak economies across Europe could benefit from cheaper borrowing rates, but the bank remains concerned at inflationary pressures.

Conflicting pressures

The main measure of inflation in the eurozone reached 2.5% in September, above the ECB's 2% target, because of rising oil prices.

But higher commodity prices have also slowed growth in the 12 nations using the euro.

Brussels recently downgraded its economic forecasts for the eurozone, projecting growth of 1.2% this year as opposed to 1.6% previously.

The eurozone economies grew by 2.1% in 2004.




SEE ALSO:
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