London: The European Central Bank today
retained the benchmark rates, continuing with its low interest
rate regime to boost the region's economic recovery.
Battered by the global financial crisis, Europe is now
looking at a nascent economic recovery and the 16-nation
zone, which shares the common currency euro, came out of
recession in the September quarter.
The apex bank, which sets the monetary policy for the
euro zone, has kept the interest rate on main refinancing
operations unchanged at 1 per cent.
ECB's Governing Council at its meeting also kept on hold
the interest rates on the marginal lending facility and the
deposit facility at 1.75 per cent and 0.25 per cent,
respectively.
The central bank has been maintaining the interest rates
since May this year, as part of its efforts to ensure cheap
credit in the region.
Going by the data from Eurostat, the statistical agency
for the European communities, Europe has exited recession in
the third quarter.
In the September quarter, the GDP of the euro zone and
27-nation European Union grew by 0.4 per cent and 0.3 per
cent, respectively.
The world's largest economy, the US, has been maintaining
near-zero interest rate regime for many months, in the wake of
the financial meltdown.
PTI
First Published: Thursday, December 03, 2009, 21:05