6 Aug 2010

ECB and Bank of England hold rates

6:49 am on 6 August 2010

The European Central Bank has kept eurozone interest rates on hold at 1%, as expected.

It is the 15th consecutive month that rates have stayed at a record low, as the ECB continues to seek to help economies recover from last year's recession.

ECB president Jean-Claude Trichet said that while the eurozone economy was growing, uncertainty remained.

He also said that inflation would remain low into the medium and longer term.

There is high unemployment in countries such as Spain and Greece where governments are continuing efforts to trim their public deficits.

Consumer spending across the 16 members of the eurozone also remains weak.

Earlier, the Bank of England kept UK interest rates on hold at 0.5%.