MercoPress. South Atlantic News Agency

European Union interest rates unchanged

The ruling body of the European Union Central Bank left the basic interest rate unchanged at 3,25% as anticipated by financial markets.

Experts expected no surprises in spite of the fact that the persistence of economic weakness in the Euro zone made an interest rate reduction highly possible.

However EU Central Bank president Wim Duisenberg during the recent EU meeting in Denmark made it quiet clear that the current level of interest rate "is the adequate" and no additional monetary or fiscal measures are needed to spur growth in the Euro zone.

Mr. Duisenberg was not very optimistic about the evolution of the EU economy anticipating that the "zone's potential growth level between 2 and 2,5% will not be reached this year", and at the soonest, could be in 2003. Experts also fear that a conflict in Iraq could rocket oil prices limiting even further any growth potential.