The European Central Bank (ECB) has left interest rates unchanged following a meeting in Frankfurt today. Policymakers at the bank that controls monetary policy for the 12 nations that share the euro had been expected to hold rates at 2.5pc, following comments last week from ECB vice president Lucas Papademos. Economists at AIB Global Treasury said they now expect the bank to lower rates in June and will be watching for a change in tone at this afternoon's press conference.
The Bank of England and the US Federal Reserve both left their lending rates unchanged this week, with the latter warning of downside risks to economic growth in its accompanying statement. Following the decision, the euro was trading at USD1.1418, moving above USD1.14 again following a dip this morning, and at 71.09p sterling, from 71.40p yesterday, its highest level since its launch in 1999. //www.fxcentre.com