Posted By thestatedtruth.com on September 2, 2010

Crisis mode? Hmm…..their words not ours!

ECB Keeps Key Interest Rate at 1%, May Maintain Crisis Mode
By Christian Vits 

 Sep 2, 2010 

The European Central Bank kept interest rates at a record low today and President Jean-Claude Trichet may signal the bank will stay in crisis mode into next year.

The ECB’s Governing Council set the benchmark lending rate at 1 percent for a 17th month, as predicted by all 57 economists in a Bloomberg News survey. Policy makers are also likely to extend emergency lending measures for banks into 2011 as the risk of a renewed U.S. recession threatens the euro region’s economic rebound, economists said. Trichet holds a press conference at 2:30 p.m. in Frankfurt.

“The ECB would like to end its extraordinary measures relatively soon but the situation is still too fragile to return to the exit path before year-end,” said Juergen Michels, chief euro-area economist at Citigroup Inc. in London.

More at:  http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a_kD.vHMhD6A

Categories: Commentary, Economy, Interest Rates, Bonds, National News, Wall Street, World News
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