the European Central Bank has decided NOT to cut interest rates (04.09.2008) je 20

Despite cutting Eurozone economic growth forecasts, the European Central Bank has decided NOT to cut interest rates -- leaving the key rate steady at 4.25 percent. ECB President, Jean Claude Trichet, says the bank's top priority remains fighting inflation. While the European economy is teetering on the brink of a recession, some ECB council members like Germany's Axel Weber have indicated another rate increase may be necessary if the inflation outlook deteriorates.