Filed under: International markets, Other issues, Economic data
The European Central Bank and the Bank of England both kept benchmark interest rates the same Thursday, The Associated Press reported — a monetary policy status-quo for at least the time being, as economists and analysts await further data on the extent of the U.S. economic slow down.
The ECB kept its key rate, the refinance rate, at 4%, while the BOE maintained its rate at 5.5%.
The central banks’ decision had a mixed impact on the currency markets, with the euro rising about 1 cent to $1.4737, and the pound remaining virtually unchanged versus the dollar at $1.9588.
Somewhat surprised by BOE
Currency trader Andrew Resnick, told BloggingStocks Thursday traders were somewhat surprised by the Bank of England’s stand-pat decision, less so by the ECB verdict.
“Many thought the Bank of England might lower rates slightly, given the softness they’re beginning to see in consumer spending and housing,” Resnick said. “The ECB was not a surprise because they’ve been the toughest major central bank on inflation since I started trading 10 years ago.”
Continue reading ECB, BOE keep benchmark interest rates unchanged
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