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| Bank of England, European Central Bank retain key rates |
| Press Trust of India / London Oct 08, 2009, 19:20 IST |
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The British and European central banks today left their key interest rates unchanged at low levels, continuing with their efforts to bolster the regions' economies.
Even as hopes of global economic revival are gaining momentum especially with Germany and France exiting recession, Europe continues to grapple with financial turmoil.
Interestingly, earlier this week, Australia became the first advanced economy to hike its interest rates, indicating that the worst of recession is over.
However, the Bank of England has retained the benchmark interest rate at 0.5 per cent, unchanged since March 2009.
Britain's apex bank's Monetary Policy Committee has voted to maintain the official rate paid on commercial bank reserves at 0.5 per cent, while deciding to continue with its asset purchase programme.
"The Committee also voted to continue with its programme of asset purchases totalling 175 billion pounds financed by the issuance of central bank reserves," the Bank of England said.
Carrying on with its low-interest regime, the European Central Bank too left their key rates unchanged.
The meeting of the bank's Governing Council retained the interest rate on the main refinancing operations at 1 per cent. The interest rates on the marginal lending facility and the deposit facility too were not changed at 1.75 per cent and 0.25 per cent, respectively.
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