ECB keeps key rate unchanged at 1%

ECB keeps key rate unchanged at 1% London: The European Central Bank on Thursday retained its key rate at one per cent, amid the constituent countries continuing to grapple with the economic turmoil.

Separately, the Bank of England too retained its benchmark rate at 0.5 per cent.

The ECB, which sets the rates for the countries which share the common currency euro, has decided to keep them unchanged.

The interest rate on the main refinancing operations and marginal lending facility would remain at one per cent and 1.75 per cent, respectively. The rate on deposit facility would be at 0.25 per cent, ECB said in a statement.

Majority of the countries in the region are mired in recession and are witnessing higher unemployment rates.

Meanwhile, the Bank of England decided to maintain the official bank rate paid on commercial bank reserves at 0.5 per cent and would also increase the size of asset purchase programme to 175 billion pounds.

"The (Monetary Policy) Committee also voted to continue with its programme of asset purchases financed by the issuance of central bank reserves and to increase its size by 50 billion pounds to 175 billion pounds," the apex bank said in another statement.

Bureau Report