Eurozone interest rates remain unchanged for 8 consecutive months

 

Interest rates are at their lowest point in the ECB's 10-year history, and the eurozone interest rates have now been held at 1% for the eighth consecutive month. Rates have been at 1% since May of 2009.

The decision to hold the rate was widely expected by economists, with Europe as a whole still recovering from recession.

However, there was some positive news, with data showing that industrial production throughout the Eurozone was found to be growing at double the expected rate.

Economists argue that rates are unlikely to increase as long as eurozone inflation rates remain well below the ECB's target of 2%.

There are also questions over the state of Europe's economic recovery, with the state of finances in Greece being of particular concern. Last year it was revealed that the budget deficit of Greece was expected to reach 12.5% of GDP, attracting the condemnation of the European Union.

The eurozone prohibits budget deficits of more than 3% of GDP.