MercoPress. South Atlantic News Agency

Eurozone and UK rates remain unchanged.

The European Central Bank decided Thursday to leave Eurozone interest rates unchanged at 2%. The decision was expected by financial markets since there are growing concerns about the economic recovery of the Eurozone twelve nations.

High oil prices and a surge in the Euro against the US dollar following President George Bush's re-election could lead to a slower recovery.

The European Bank cut interest rates 0,5% in June 2003 and has since maintained the rate unchanged.

The official release states that in Thursday meeting, the Governing Council of the ECB "decided that the minimum bid rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 2%, 3% and 1% respectively".

Earlier on Thursday the Bank of England following its monthly monetary policy meeting decided to leave UK interest rates unchanged at 4,75%.

The decision was taken amid signs of a slowdown of the British economy, with industrial output falling and the housing market cooling, and with no evidence of rising inflation.

Provisional figures from the UK Statistics Office indicate the economy grew 0,4% in the third quarter, the weakest since the first quarter of 2003 and attributed to slower industrial production.

"The Bank of England did the right thing. It's clear the economy has slowed since the summer as the earlier rate rises have begun to take effect and global conditions have become more difficult", said Ian McCafferty, the Confederation of British Industry chief economic advisor.

The Bank of England has raised interest rates five times since November 2003, while the US Federal Reserve has done twice in the last four months.