The European Central Bank (ECB) this afternoon left interest rates across the eurozone unchanged for the twelfth straight month. The expected decision to leave lending costs at 3.25pc follows a 50 basis point cut by the Federal Reserve last night, but a surprise no change decision by the Bank of England earlier today Both the ECB and the Bank of England were under pressure to cut rates amid growing concern over the global economic recovery and the decision by the Fed last night to slash its borrowing costs to a 41-year low
The ECB's decision had been expected, but the Bank of England's announcement was surprising particularly as three of the bank's nine policymakers voted in favour of a quarter point cut last month. The British Chamber of Commerce has welcomed the Bank of England's decision, saying the move was "understandable" in light of the boom in the property market. The Confederation of British Industry said it was "comfortable" with the Bank of England's decision to hold rates steady at 4pc, but warned that a radical cut will be needed if the Fed's move fails to boost the American economy. ///www.fxcentre.com