ATHENS, May 8: The European Central Bank and Bank of England left benchmark lending rates unchanged on Thursday after policymakers weighed the paramount risk from inflation against weakening economic growth.

ECB governors meeting in Athens maintained the main eurozone interest rate at 4.0 per cent while the BoE left Britain’s rate at 5.0 per cent in London.

ECB president Jean-Claude Trichet said that the bank expected high rates of inflation “for a protracted period of time” and for price rises to moderate “only gradually” over the course of the year.

“Inflation rates have risen significantly since the autumn, owing mainly to increases in energy and food prices,” Trichet told a news conference in Athens following a meeting of the ECB governing council in the Greek capital.

“As we have said on previous occasions, inflation rates are expected to remain high for a rather protracted period of time, before gradually declining again,” he said.—AFP