ECB fails to follow Fed's example in cutting rates

Following speculation that the eurozone would succumb to the economic slowdown in the US, the Europe...

Following speculation that the eurozone would succumb to the economic slowdown in the US, the European Central Bank (ECB) left interest rates on hold at 4.75% at its meeting in February. The latest rate cut by the US Federal Reserve, the second this year, had heightened speculation the ECB would follow suit. Although the mood of European equity markets will continue to be dominated by events in the US, in the short term at least, Europe appears relatively immune from the uncertain outlook facing the US and many analysts believe the ECB will not cut interest rates in the near futu...