The European Central Bank or ECB has kept eurozone interest rates at 0.75% unchanged for eight consecutive months.
ECB cut rates from 1% last year in July after which the rate has remained constant. Mario Draghi, President of ECB, said that they had discussed a rate cut but the consensus decision was to leave them at the same level.
ECB rates are at current record low level and analysts do not foresee any rise or alteration in the rates this year. The decision was matched by the Bank of England, which announced its decision to keep interest rates unchanged at 0.5%.
The inflation figures for the eurozone comprising of 17 nations show that a fall from .2% to 2% in January. The European Commission had estimated inflation in the eurozone to fall to 1.8% this year. Its target was to bring inflation rates below 2%.
Austerity is widespread and economies are weakening due to which consumers are left with little free cash to spend for which retailers are unable to increase prices.
Many analysts think that the drop may provide room for the European Central Bank (ECB) to cut interest rates at the March meeting. Mr Draghi has stated that the possibility was discussed but the prevailing consensus was to leave the rates at the same level.
The president of the ECB, Mario Draghi, stated at a news conference on Thursday that the economy is predicted to start stabilizing in a year and would pick up in the second half of the current year though risks of downsides do remain.
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