ECB, BofE in unison in keeping rates steady

Both central banks today announced they are keeping their key interest rates at the same historic level amid some improvements seen in their own respective economies.  For the European Central Bank, they are also to keep some of their liquidity programs in place apart from keeping the 1% refinancing rate steady as the uncertainty in the euro-zone remains high.  ECB expects a negative 4.1% contraction in the eurozone for the year and a measly 0.2% growth for 2010.

Meanwhile, the Bank of England also announced no changes to its £175bn purchase of bonds.  Its interest rate stays at historic lows of 0.5%.  There remains the question of whether the bond-buying program needs to be expanded or stay at the current level.

Read the story on WSJ.

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