European Central Bank leaves key interest rate at 0.75% as high inflation rates mitigate concerns of renewed European recession

FRANKFURT, Germany , October 4, 2012 () – The European Central Bank on Thursday kept its main interest rate on hold at 0.75 percent as persistently high inflation offset concerns of the bloc falling back into recession.

The interest rate on its deposit facility remains at 0.0 percent, and the rate on the marginal lending facility at 1.5 percent, the ECB said.

Prices in the euro zone were 2.7 percent higher in September than in the same month a year earlier, the 22nd month that inflation topped the ECB's target of just below 2 percent.

ECB President Mario Draghi will explain the Governing Council's decision at a 1230 GMT news conference. Markets are looking for hints whether the ECB could cut rates at a later date or whether they are as low as they can go.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.