ECB and BoEIn the last months the Euro Zone economy has been quite stable. The European countries have been less affected for the sub-prime crisis than what many analysts thought at the beginning. For this reason it’s very probable that the ECB will keep its interest rate unchanged at 4%.

Following a similar pattern, and though the Pound has been more affected by the global liquidity crisis, the BoE will surely not make a move on its benchmark rate, leaving it at 5.5%.

Check the effect that the meetings have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

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Analysts' comments

  • · Holger Schmieding, economist at Bank of America
    "After the ECB raised interest rates to a roughly neutral 4 percent in June 2007, the strong euro and the lingering turmoil in money and credit markets will likely keep the central bank on hold until September 2008." - Forbes
  • · Aurelio Maccario, economist at Unicredit MIB
    "The ECB will start 2008 on the same footing as the second half of 2007." - Forbes
  • · Nico Klene, economist at ABN AMRO
    "We think that the ECB will be forced to move towards monetary accommodation and will cut interest rates in the course of 2008." - Euro2day
  • · Peter Vanden Houte, economist at ING
    "It seems that the ECB is trying to scale back inflation expectations by talking tough without actually tightening monetary policy." - Euro2day