ECB Holds Steady

The European Central Bank has held its key interest rate steady,having raised it a quarter of a percent in July.Jean-Claude Trichet,head of the ECB,said that there are upside risks to price stability over the medium term.The data underpin the July rate hike.The high Consumer Price Index will likely be more protracted than is supposed.On the other hand,growth will be particularly weak in Q3,and the ECB has no bias on rates.The bank is focused on bringing down inflation even as growth slows.In the Euro-zone,business and consumer confidence were at their lowest in more than five years,at a reading of 89.5 for July.