Eurozone interest rates remain steady
The European Central Bank chose to keep interest rates at their current levels in a meeting on Thursday. The decision was expected, but many analysts believe that the ECB will raise rates next month, despite comments to the contrary from the president of the ECB.
In the Eurozone, interest rates remained at 2.5 percent, but some analysts expect that by the end of the year it will have risen to 3.5 percent. This expectation is based on data showing that the region’s economy is recovering and business confidence is growing. The Purchasing Managers Index was at 58.2 in March, the highest it has been since September 2000, companies have increased capital spending, and various measures indicate that economic growth in the first three months of this year is at 0.7 percent. Less optimistic data includes the fact that unemployment remains high – 9.1 percent in Germany and 8.9 percent in France – and the decline of retail sales by 0.2 percent in February.
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