European Central Bank Keeps Interest Rate at 1 Percent

The European Central Bank left its benchmark interest rate unchanged at 1 percent as it waits to see whether a massive infusion of credit into the banking system will help the euro zone’s struggling economy.

Markets and analysts will be looking to Thursday’s remarks by bank President Jean-Claude Trichet about the ECB’s $623 billion in 12-month loans offered to banks last week, its biggest ever, and what it augurs for the 16-nation euro zone in a bid to try to keep cash flowing to, from and between banks. Read more…