The European Central Bank (ECB) held its key refinancing rate steady at 0.75 percent, as expected, along with its other main rates, the rate on its marginal lending facility and the deposit rate at 1.50 percent and zero percent, respectively.
The ECB, which cut is refi rate by 25 basis points last year, said its president would comment on the bank's decision at a press conference later today.
The euro area's inflation rate fell to 1.8 percent in February from January's 2.0 percent. The ECB targets inflation of below, but close to 2 percent.
The Gross Domestic Product of the 17-nations that make up the euro zone contracted by 0.6 percent in the fourth quarter, the fifth quarterly contraction in a row, for annual shrinkage of 0.9 percent.
www.CentralBankNews.info
Rising commodity prices, in particular for oil and food, have put upward pressure on inflation, but the ECB also noted increases in indirect taxes like VAT as eurozone governments look for ways to reduce excessive debt.
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