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Eurozone rates on hold but ECBpaves the way for exit strategy
INTEREST rates were kept on hold at one per cent yesterday in the eurozone but a more upbeat European Central Bank (ECB) cheered markets.
ECB President Jean-Claude Trichet said there had been some improvement in the economic situation but stressed the need to remain prudent and cautious.
He said that while data was more positive, yesterday’s September retail sales were disappointing.
Official data showed that sales volumes fell 0.7 per cent month on month.
Trichet added that given the improved conditions, not all of the central bank’s liquidity measures would be needed to the same extent and that the extraordinary liquidity measures taken are phased out in a timely and gradual fashion.”