ECB holds rates to assess deflation threat

The European Central Bank left interest rates unchanged on Thursday, holding off policy action while it waits for new economic forecasts next month to assess the deflation threat facing the euro zone. A sharp drop in euro zone inflation to 0.7 percent in January, well below the ECB's target of just under 2 percent, would have focused the minds of the bank's policymakers. The ECB held its main rates at 0.25 percent, left the deposit rate it pays on bank deposits at zero and held its marginal lending facility - or emergency borrowing rate - at 0.75 percent. "Unchanged rates was our expectation today, though we suspect it may have been a close call and may disappoint some," said Nick Matthews, economist at Nomura.

via Business News - Yahoo Finance http://ift.tt/LTbFOt