8 Aug 2008

Eurozone rates on hold at 4.25%

6:19 am on 8 August 2008

The European Central Bank has kept interest rates unchanged at 4.25% amid signs of slowing economic growth.

Earlier on Thursday the Bank of England also opted to keep rates unchanged at 5%. US interest rates are currently 2%.

ECB President Jean-Claude Trichet said growth in the 15-nation bloc had been "particularly weak" in mid-2008.

But he stressed that against the deteriorating outlook, the ECB's priority is to maintain price stability as inflation reaches record levels.

The ECB raised its rates in July - the first increase in a year.

Eurozone inflation increased to 4.1% in the year to July, the highest rate since the measurements began in 1997.