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ECB leaves rates unchanged despite German criticism

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By Euronews  with Reuters
ECB leaves rates unchanged despite German criticism

<p>There was no change in the cost of borrowing from the European Central Bank after its latest policy meeting, with <span class="caps">ECB</span> head Mario Draghi ignoring criticism from Berlin over his moves to try to stimulate the eurozone economy and boost inflation. </p> <p>The key benchmark interest rate remains at <a href="http://www.euronews.com/2016/03/10/the-european-central-bank-has-cut-its-benchmark-interest-rate-to-zero-from-05/">a record low zero</a> as the <span class="caps">ECB</span> pumps newly printed money into the banking system by buying billions of euros worth of bonds from banks.</p> <blockquote class="twitter-tweet" data-lang="en-gb"><p lang="en" dir="ltr">Draghi: We continue to expect rates to remain at present or lower levels for extended period of time; well past horizon of asset purchases</p>— <span class="caps">ECB</span> (@ecb) <a href="https://twitter.com/ecb/status/723128271068487680">21 April 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <p>German Finance Minister <a href="http://www.euronews.com/2016/04/11/germany-and-new-zealand-react-to-panama-papers-leak/">Wolfgang Schaeuble</a> has said its policies are causing “extraordinary” problems for Germany and particularly the country’s small savers. He also said they have fuelled the rise of the eurosceptic AfD party. </p> <p>Late on Wednesday, Schaeuble stuck to this tough line, saying that “a long period with zero and negative interest rates is not a sensible situation”.</p> <p>For now the <span class="caps">ECB</span> seems to have the edge in the debate after Schaeuble backtracked on some of his comments and Bundesbank chief Jens Weidmann, the <span class="caps">ECB</span>’s biggest critic to date argued that its stance was appropriate.</p> <p>The euro rose against the dollar as the <span class="caps">ECB</span> held interest rates unchanged.</p> <blockquote class="twitter-tweet" data-lang="en-gb"><p lang="en" dir="ltr">The euro against the dollar as <a href="https://twitter.com/hashtag/ECB?src=hash">#ECB</a> President Mario Draghi starts talking <a href="https://t.co/EtBHwRkVQL">https://t.co/EtBHwRkVQL</a> <a href="https://t.co/itiYREjr9b">pic.twitter.com/itiYREjr9b</a></p>— <span class="caps">CNBC</span> International (@CNBCi) <a href="https://twitter.com/CNBCi/status/723129465400909824">21 April 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>