The ECB stays the course. “On the basis of its regular economic and monetary analysis, the Governing Council decided to leave the key ECB interest rates unchanged, ” Jean-Claude Trichet, president of the ECB, said at a news conference. “The current rates remain appropriate,” Trichet said. “The incoming information and analysis that have become available since our meeting in early October have confirmed our expectations.” The annual inflation rate was -0.1 percent in October, according to Eurostat’s latest estimate, and it was expected to rise above zero again in the coming months, Trichet said. Medium to longer-term inflation expectations remain firmly anchored in line with the Governing Council’s aim of keeping inflation rates below, but close to 2% over the medium term. At the same time, the latest information continues to signal an improvement in economic activity in the second half of this year, Trichet said. The Governing Council expects the Euro area economy in 2010 to recover at a gradual pace, recognizing that the outlook remains subject to high uncertainty. The Governing Council also left interest rates on the marginal lending facility and the deposit facility unchanged at 1.75% and 0.25% respectively. Read more
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