ECB not to change refinancing rate: analysts
Azerbaijan, Baku, Sept. 3 / Trend , A.Badalova/
The European Central Bank (ECB) will leave the key interest rate unchanged at one percent annually at today's meeting, analysts say.
"The ECB's rate will stand at one percent in 2010 due to minor signs of recovery in the world economy and the lack of inflationary pressures," say analysts from Capital Economics, one of Britain's leading consulting firms for economic research.
At the August meeting, the ECB decided to maintain the recorded rate, which is currently the highest among the world's largest central banks.
Deutsche Bank analysts also believe that the ECB will not change the rate next year. The ECB's program to stimulate the European economy has yielded the first successful results, analysts say.
This week, the reconsidered data for changing the level of euro-zone GDP for the second quarter has been published. According official EU statistical agency Eurostat's initial data, GDP of 16 countries which compromise the euro-zone declined 0.1 percent in the second quarter. The volume of the region's GDP declined by 4.7 percent compared to the second quarter in 2008. At the same time, GDP in France and Germany increased 0.3 percent which testifies that these countries' are leaving behind the recession.
Despite the positive signs of recovery, Capital Economics analysts predict the economy's decline in the euro zone this year at four percent. In 2010, according to the analysts, the region's GDP will grow by only one percent.
According to forecasts from Deutsche Bank, global economic growth in 2010 will be 2.5 percent. The bank had previously forecast a 2-percent growth.
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