Trends support no change, says ECB
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THE EUROPEAN Central Bank sent a signal in its latest monthly bulletin that it will not reduce Euroland interest rates today, writes Diane Coyle.
Although the bank conceded that growth had slowed, it said the euro remained weak, money and credit growth was buoyant and recent wage settlements pointed to rising costs. "Taken together, all these factors argue in favour of an unchanged monetary stance."
In a move hinting that the clash between bankers and politicians did not end with the resignation of Oskar Lafontaine, it also criticised member governments. Budget deficits were too high, leaving no margin for them to expand further in an economic slowdown. High debt levels had pushed long-term interest rates higher, it said.
Worse, high tax burdens were "causing substantial disincentives to economic activity," the report said. "Priority needs to be given to removing the structural impediments to a higher level of economic activity in the euro area."
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments