Reply #30: europe: ECB, Bank of England hold rates as recession fears mount

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http://economictimes.indiatimes.com/news/international-business/ecb-bank-of-england-hold-rates-as-recession-fears-mount/articleshow/9911914.cms

FRANKFURT: The European Central Bank held interest rates at 1.5 percent on Thursday and is likely to indicate that a policy tightening cycle it began in April is on hold in the face of growing evidence the euro zone's economic recovery is losing momentum.

Britain's central bank left interest rates at 0.5 percent, leaving open the option of restarting its quantitative easing programme should the economy weaken further.

ECB President Jean-Claude Trichet will explain the Governing Council's decision at a 1230 GMT news conference. Markets are looking for hints of a long break before the next interest rate increase, and for any signs the ECB could even cut rates.

The bank's reactivation of its bond-buy programme will also be in the spotlight now the euro zone debt crisis has spread to Italy.