Central banks hold rates steady with recovery in sight

Suzie Neuwirth

INTEREST rates were left unchanged by the European Central Bank and the Bank of England today, as recent data indicates a slow but steady economic recovery in Britain and the Eurozone.

Bank of England Governor Mervyn King’s decision not to tweak monetary policy before the arrival of his successor next month was widely expected by economists, as Britain’s recovery is gathering strength.

Meanwhile ECB President Mario Draghi told a news conference today that the bank’s monetary policy would remain “accommodative” for as long as necessary to bolster the region’s economy, reported Reuters.

Recent improved data in May indicated that the Eurozone would rise out of its recession later this year.