The European Central Bank has decided to keep interest rates at zero, despite signs of recovery in the countries that use the euro.
Growth across the eurozone in the first quarter was unexpectedly strong at 0.6 per cent, prompting speculation the bank might scale back its stimulus measures.
The bank has been buying 60bn euros worth of bonds every month since 2015.
ECB President Mario Draghi said in April he expected rates “to remain at present or lower levels”.
The eurozone economy grew at its fastest rate in a year during from January through to March, according to the latest numbers from the EU statistics agency Eurostat.
At that rate, the 19 countries that use the euro would see growth at 2.3% this year, nearly double the rate of the US, which is on course to grow 1.2 per cent.
Meanwhile the ECB’s bond buying programme, if continued is expected to top 2 trillion euros by the year end, and its low interest rates mean that banks have to pay a deposit rate of 0.4% to park their fund with the bank.-BBC
