ECB Keeps Rates on Hold

The European Central Bank kept benchmark interest rates unchanged at a record low of 1.0 percent on Thursday with the ECB expected to remain in a holding pattern given uneven growth and low inflation.

During the news conference on Thursday European Central Bank President Jean-Claude Trichet dismissed speculation among some market watchers that fiscal woes could prompt Greece to leave the European single currency. Asked about such speculation at his monthly news conference, Trichet said he wouldn't comment on an "absurd hypothesis." Trichet said the ECB would carefully examine Greece's steps to slash its deficit over the next three years below the 3% cap imposed by the European Union. Trichet warned that high debt burdens in the 16-nation euro zone threatened to place a burden on monetary policy and urged governments to implement ambitious fiscal consolidation plans.

ECB Keeps Rates on Hold, MarketWatch
1/16/2010 2:23:22 PM