Cautious ECB leaves interest rates at 1%

The European Central Bank, sounded a note of caution on the eurozone’s economic rebound on the 3 September 2009 forecasting only a 'very gradual recovery' and hinting that growth could be thrown into reverse again.

Underlying the ECB’s wariness, its main interest rate was left unchanged at 1%, a record low, for the fourth consecutive month. Mr Trichet again described monetary policy as 'appropriate' – a phrase which signals that the ECB is in no rush to change its stance.

ECB: Press Release, 3.9.09: Introductory Statement http://www.ecb.int/press/pressconf/2009/html/is090903.en.html

ECB: Press Release, 3.9.09: Monetary Policy Decisions http://www.ecb.int/press/pr/date/2009/html/pr090903.en.html

BBC News, 3.8.09: Eurozone to 'grow more strongly' http://news.bbc.co.uk/1/hi/business/8235948.stm

Deutsche Welle, 3.8.09: European Central Bank raises economic forecast http://www.dw-world.de/dw/article/0,,4623183,00.html

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