European Central Bank (ECB): Interest rates on hold

Just like the Bank of England who decided to keep Interest rates at 0.5%. The European Central Bank kept interest rates on hold at 1.0 percent on Thursday.

Investors now seem braced for signs that it will soon start weaning banks off cheap and abundant liquidity. All off the 78 economists polled by Reuters last week had expected the ECB to leave interest rates at a record low this month. Unicredit economist Marco Valli.said “Rates on hold was a given, we need to look for the news conference to have something more interesting.”

The U.S. Federal Reserve made no change to policy settings on Wednesday despite growing confidence of a recovery. The Bank of England also left its rates untouched, but said it would expand its quantitative easing program by 25 billion pounds as we mentioned in a recent post.

To read more on this story go to reuters.com. Did you expect The European Central Bank kept interest rates on hold at 1.0 %? Let us know your thoughts.