(RTTNews) - Thursday, the European Central Bank is expected to leave its interest rates unchanged for the second straight month in September.

The key-lending rate, which is the minimum bid rate on the main refinancing operations, is forecast to remain at 4.25%. The central bank had maintained the rate at a six-year high of 4% since June last year, before hiking it in July 2008. In August, the ECB had kept its key interest rate on hold after hiking 25 basis points in July to 4.25% amid rising prices and slowing growth in the Eurozone.

The interest rate on the marginal lending facility is expected to be held at 5.25%, while the interest rate on the deposit facility is seen to remain at 3.25%.

The Eurozone annual inflation eased to 3.8% in August from a record 4% in July. Annual inflation continues to stay above the ECB target, which is to keep inflation rates “below, but close to, 2% over the medium term”. The ECB would possibly resist pressures to slash interest rates as long as inflationary pressures remain strong.

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Posted in Categories: Economy, Eurozone, Releases.

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