ECB, Bank of England Keep Rates Unchanged (AP) (06-03-2008)

FRANKFURT, Germany (AP) -- Both the European Central Bank and the Bank of England kept their key interest rates unchanged on Thursday. The ECB left its benchmark interest at 4 percent, while the Bank of England held at 5.25 percent.

Traders will be looking for clues from ECB president Jean-Claude Trichet later Thursday knowing that his and his colleagues’ main concern is inflation so they will want to see how he views the effects of the rising euro, record inflation in the 15-nation euro zone and whether fears of a U.S. recession may cause the bank to lower its rates later this year.

Inflation in the euro zone has been at a record of 3.2 percent since the start of the year and the ECB's own staff will present their forecasts at the meeting.

Source: AP