Euro interest rates stick at 3.5%

The European Central bank has chosen to keep interest rates at 3.5% this month. In 2006, the European Central bank pushed through six rate rises. The ECB’s decision to freeze rates came after an announcement by the Bank of England that they were holding the UK’s interest rates at 5.25% for another month. Historically, the Eurozone has always had lower rates than the pound sterling rate, since the Euro’s launch in 2002.

However, the ECB president Jean-Claude Tricher said they were keeping a firm eye over Europe to ensure price stability remained. Despite Germany’s decision to increase VAT from 16% to 19%, the Eurozone has had a strong economic start to 2007. Consumer confidence remains high and unemployment around Europe is falling or holding steady. With this in mind, it could be a good time to invest in property, particularly as analysts are predicting that in March, the eurozone rates will rise to 3.75%.

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