September 5, 2003	Friday	Rajab 7, 1424

FRANKFURT, Sept 4: The European Central Bank held its key interest rates steady as expected on Thursday and offered no sign it might be willing to cut them again in the near future while euro-zone governments failed to get their finances in order.

Indeed, with the euro off its recent highs against the dollar and the first tentative signs emerging of an economic recovery in the euro area later this year, some observers are beginning to believe the current cycle of monetary easing might actually be over.

Meeting for the first time after a month-long summer break, the ECB decided to hold its central “refi” refinancing rate steady at 2 per cent, where it has been since June 5.

And it also left its other two key rates — the deposit and marginal lending rates — unchanged at 1 per cent and 3 per cent respectively.

BoE RATE: The Bank of England (BoE) held its key interest rate steady as expected at 3.50 per cent on Thursday, its lowest level for 48 years.

The base rate is what the BoE charges on loans to commercial lenders and is viewed as a benchmark for loans to companies and individuals.

In July, the bank cut its rate from 3.75 per cent in an effort to revive flagging exports and retail spending.

The last time the rate was as low as 3.50 per cent was in January 1955.—AFP