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European Central Bank Keeps Rate At 1%
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Tuesday, February 09, 2010 GMT
By: Mike Campbell
With inflation firmly under control within the Eurozone and the European recovery fragile, to say the least, it was no surprise that the European Central Bank (ECB) continued with its policy of low interest rates.
The rate has been maintained at 1% since May last year with the intention of easing the money supply to business an encouraging consumer spending (since money on deposit makes even less interest).
The bank has yet to make any statement about the recent decline of the Euro which, in some quarters, has been attributed to concerns about indebtedness within Eurozone countries.
Indian Economy Is Predicted To Grow By 7.2%
Indian sources are confidently predicting that the economy will have achieved year-on-year growth of 7.2% for the twelve months to the end of March. The Reserve Bank has supported the economy heavily, to the tune of $125bn which has been injected in to it since September 2008.
Decent growth figures since March 2009 have led to speculation that the support measures will be wound down sooner rather than later. Better data from the manufacturing sector have offset a decline in agricultural output.
There is concern that inflationary pressures are increasing within the sub-continent and this has generated speculation that the bank may increase rates. The official projection from the bank is that inflation will have risen to 8.5% for the year ending in March.
G7 Promises To Forgive Haitian Debt
With much of its capital city reduced to rubble and many of its citizens made homeless, killed or injured by the recent earthquake, the G7 have decided to forgive bilateral debt between the group and Haiti.
The exact figures involved were not immediately available. G7 leaders are urging other multinational bodies to follow suit.
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