The European Central Bank (ECB) has made no changes to its interest rate policy, in spite of speculation that it would act in the face of falling inflation.
The central bank today announced it was keeping its main interest rate at 0.25 per cent, where it has stood since being reduced from 0.5 per cent in November 2013.
Some experts had urged the ECB to act after it was revealed earlier this week that eurozone inflation had fallen to 0.5 per cent, its lowest level in four years.
Christine Lagarde, the head of the international monetary fund (IMF), yesterday called on the ECB to increase its use of “unconventional” monetary easing measures to boost the area’s recovery.
But the eurozone has so far proven resistant to taking rates to a negative level or introducing quantitative easing measures to mirror the actions taken by the US, UK and Japan.
