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Justin Kuepper

Eurozone Interest Rates Likely to Remain Unchanged

By February 20, 2013

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The recent rise in the euro suggested that many traders thought the European Central Bank (ECB) would raise its interest rates. But, Bank of France Governor Christian Noyer noted that "there is no particular interest in cutting rates by a few cents if it only impacts Germany or core countries" and tempered many of these expectations.

Euribor, the traditional unsecured bank-to-bank lending rate, is currently at 0.221%, while the ECB's main refinancing rate is already at a record low 0.75%. Few economists believe that cutting interest rates alone will have much effect, but many believe the eurozone could benefit from maintaining or enhancing its bond-buying programs.

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