The European Central Bank (ECB) held interest rates steady at its monthly policy meeting on today (8 May 2003) despite suggestions the impact on inflation of the euro's recent strength would give it leeway to ease policy.
The bank's key refinancing rate was left at a three-year low of 2.5 per cent for a second month. Bank officials had played down the possibility of a rate cut at Thursday's meeting and shrugged aside the impact of the stronger euro, despite a growing chorus of complaints by eurozone businesses.
The single currency has reached a series of four-year highs against other leading currencies, and has risen about 20 per cent in the past year against the dollar.
