ECB flags March rate hike

0 Comments | AFP, February, 2007

FRANKFURT (AFP) — The European Central Bank held its key rates steady as expected, but ECB chief Jean-Claude Trichet has issued a strong hint that borrowing costs could rise next month in order to keep a lid on inflation in the 13 countries that share the euro.

At its regular monthly rate-setting meeting Thursday, the ECB held the minimum bid rate for its regular refinancing operations steady at 3.50 percent.

And it also held its two other key rates -- the deposit rate and the marginal lending rate -- unchanged at 2.50 percent and 4.50 percent respectively.

Earlier in London, the Bank of England also maintained its key rates at 5.25 percent.

Nevertheless, at the news conference afterwards, ECB president Trichet left no doubt that the guardian of the...