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| Version 1 | Version 2 |
|---|---|
| ECB rates stick on price concerns | ECB rates stick on price concerns |
| (about 3 hours later) | |
| The European Central Bank (ECB) has kept interest rates unchanged at 4% as concerns about inflation persist. | The European Central Bank (ECB) has kept interest rates unchanged at 4% as concerns about inflation persist. |
| High food and oil prices have pushed up the cost of everyday essentials such as bread and petrol, sending inflation to record levels in previous months. | High food and oil prices have pushed up the cost of everyday essentials such as bread and petrol, sending inflation to record levels in previous months. |
| ECB President Jean-Claude Trichet has been resisting calls from business groups claiming that the high borrowing costs are hurting their profits. | ECB President Jean-Claude Trichet has been resisting calls from business groups claiming that the high borrowing costs are hurting their profits. |
| Earlier, the Bank of England left its main interest rate unchanged at 5.25%. | Earlier, the Bank of England left its main interest rate unchanged at 5.25%. |
| "Looking ahead we expect a more protracted period of relatively high rates of inflation that we did a few months ago," said ECB president Jean-Claude Trichet. | |
| But he insisted that the ECB governing council's monetary policy would deliver lower inflation in the medium term. | |
| Powerful euro | Powerful euro |
| One of the main concerns for businesses is the strength of the euro, which is being underpinned by the interest rate level. | One of the main concerns for businesses is the strength of the euro, which is being underpinned by the interest rate level. |
| The euro has climbed to record levels against the US dollar, and the worry for exporters is that foreign demand will wane as a result. | |
| A rate cut, they argue, is needed to weaken the euro and stoke up exports. | A rate cut, they argue, is needed to weaken the euro and stoke up exports. |
| "The euro's continuing appreciation is becoming alarming," the European Trade Union Confederation warned. | "The euro's continuing appreciation is becoming alarming," the European Trade Union Confederation warned. |
| The group explained the strong euro would exacerbate problems already being caused by wobbles in the world financial markets, slowing global growth and weakening housing markets in a number of key economies. | |
| However, the ECB has argued that the eurozone's underlying growth is fundamentally sound and it is inflation, rather than recession, that poses the greatest threat to stability. | However, the ECB has argued that the eurozone's underlying growth is fundamentally sound and it is inflation, rather than recession, that poses the greatest threat to stability. |
| "Price stability is a prerequisite for sustainable growth and job creation," Mr Trichet said. |