Euro rates stick on growth worry

The European Central Bank has left its key interest rate unchanged at 2% for a 19th month in succession.

Borrowing costs have remained on hold because of concerns about the strength of economic growth in the 12 nations sharing the euro, analysts said.
Despite signs of pick-up, labour markets and consumer demand remain sluggish, while firms are eyeing cost cutting measures such as redundancies.
High oil prices, meanwhile, have put upward pressure on the inflation rate.
Waiting game
Surveys of economists have shown that the majority expect borrowing costs to stay at 2% in coming months, with an increase of a quarter of a percentage point predicted some time in the second half of the year.
If anything, there may be greater calls for an interest rate cut, especially with the euro continuing to strengthen against the dollar.
"The euro land economy is still struggling with this recovery," said economist Dirk Schumacher. The ECB "may sound rather hawkish but once the data allows them to cut again, they will."