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Article: ECB holds its key interest rate unchanged at 2.5 percent
- Article from:
- AP Worldstream
- Article date:
- May 4, 2006
- Author:
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MATT MOORE, AP Business Writer
AP Worldstream
05-04-2006
Dateline: FRANKFURT, Germany
The European Central Bank held its key interest rate unchanged at 2.5 percent on Thursday, setting the stage for a likely increase next month.
President Jean-Claude Trichet had dampened market expectations for an increase at this meeting, but other members of the governing council have made it clear that rates are likely headed up.
Most analysts expect an increase at the June meeting, but how much remains in question.
"We think a hike in June is very likely," said Stephen Deo, an economist with UBS Investment Research in London. He said he expects the next question to be whether the bank could raise by half a ...