ECB Keeps Rate at 1% as Crisis Tests Monetary Policy
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The European Central Bank kept interest rates at a record low as the sovereign debt crisis widens economic divergences within the euro area, straining the bank’s one-size-fits all monetary policy.
The ECB’s Governing Council set the benchmark rate at 1 percent for the 21st month, as predicted by all 53 economists in a Bloomberg News survey. President Jean-Claude Trichet holds a press conference at 2:30 p.m. in Frankfurt. The Bank of England kept its key rate at 0.5 percent today.