Euro interest rates on hold at 4.25%

The European Central Bank (ECB) has voted to keep interest rates on hold at 4.25% resisting calls for a rate cut amid a slowdown in the eurozone economies and the credit crunch.

Inflation in the eurozone fell to 3.6% in September, but is still above the 2% target the ECB maintains. ECB President Jean-Claude Trichet has said that inflation remains his top priority.

Many analysts will be awaiting Mr Trichet’s comments later today on the course of euro rates. Last week, Ireland entered into recession thanks in part of a weakening of it’s housing market. The recent pressures on european banks have also affecting the economy with many banks being nationalised or provided protection from various governments.