The European Central Bank held its main interest rate at a record low of 0.75 per cent on Thursday, holding fire after a pick-up in inflation last month offset pressure to breathe life into the flagging euro zone economy by easing borrowing costs.
Annual euro zone inflation accelerated to 2.6 per cent in August from 2.4 per cent in July, coming in stronger than expected and further above the ECB's target of just below 2 per cent.
The ECB also left the interest rate on its deposit facility at 0.0 per cent—a low it went to for the first time in July to encourage banks to lend overnight to other banks, where they receive a higher rate, currently about 0.1 per cent.
The ECB held its marginal lending facility—or emergency borrowing rate—at 1.50 per cent.
Copyright: Thomson Reuters 2012
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