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ECB leaves key interest rate at record-low 0.15%

August 7, 2014

The European Central Bank left its key interest rate at a record-low 0.15 percent for the second consecutive month at its policy meeting Thursday to monitor the impact of its current policy aimed at fostering economic recovery in the eurozone.

The ECB in June became the first major central bank to introduce a negative interest rate on bank deposits, meaning banks would be charged for parking their funds at the central bank.

The measure has led to a decline in the euro versus other major currencies and a fall in interest rates in interbank markets.

But since the inflation rate in the eurozone weakened to 0.4 percent in July from a year earlier, the lowest level in four years and nine months, concern about the European economy falling into deflation remains strong and the ECB may continue to face pressure to implement additional measures to prop up the economy, analysts said.

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Source: Japan Economic Newswire

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