The European Central Bank, as expected, has kept euro zone interest rates on hold with markets now waiting for a indication that they will face a hike in June or July.
The bank has kept rates at 1.25 per cent, having raised them in April, to end two years of record low interest rates.
Jean-Claude Trichet is the head of the ECB:
“Maintaining price stability over the medium-term is our own guiding principle which we apply when assessing new information that may form our judgements when deciding on any new stance of euro zone monetary policy.”
As Inflation continues to rise across the euro zone analysts believe April’s interest rate rise will be the first in a series of hikes.
Data released last month shows inflation is running at 2.8 per cent. The ECB wants to keep it just under 2 per cent in the medium term.