The European Central Bank has left its main interest rate unchanged at one per cent for an 18th consecutive month, maintaining a steady policy course even as the US Federal Reserve launches a renewed wave of "quantitative easing". The decision to keep official borrowing costs at record lows was widely expected. The eurozone economy continues to expand, but the pace of growth has shown clear signs of slowing. Meanwhile, eurozone inflation, at 1.9 per cent in October, is within the ECB's target range of an annual rate "below but close" to 2 per cent.
However, the Fed's decision on Wednesday to buy $600bn of longer term Treasury bonds by the middle of next year has increased significantly the dangers facing the ECB.
Read More:http://edition.cnn.com/2010/BUSINESS/11/04/ecb.interest.rate/index.html
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