ECB holds rates steady

The European Central Bank’s Governing Council made no change in interest rates for the 12-nation euro area at its meeting on Thursday March 3.

The main refinancing rate–the minimum bid rate on refinancing operations–remains at 2.00%, while the marginal lending facility remains at 3.00%.

Few expected interest rates to rise, following data showing the euro-area economies grew by a disappointing 0.2% in the fourth quarter of 2004, even slower than the meagre 0.3% recorded in the third quarter.

With a strong euro dragging on exports, prospects for the future are also dim. Recent sentiment indicators have shown falling confidence among European consumers and German businesses.