ECB set to hold rates, caution on economy (Reuters)

BRUSSELS — Confidence in the eurozone’s economy fell further in April, data showed, strengthening the case for a cut in interest rates this week by the European Central Bank. The eurozone is facing a difficult road out of recession and has seen a souring of the mood among companies and consumers since March, after an optimistic start to the year was disrupted by turmoil in Cyprus and Italy.

FRANKFURT — The European Central Bank kept interest rates on hold on Thursday, waiting to see if a recession-hit economy perks up and whether an aggressive policy move by the Bank of Japan helps the eurozone. Investors’ attention will now shift to ECB President Mario Draghi’s news conference later this morning for any signals about the bank’s preparedness to lower borrowing costs for the 17-country eurozone in the coming months.

The European Central Bank is expected to keep interest rates at a record-low 1.0% on Thursday and its head Jean-Claude Trichet will probably caution against high hopes of a speedy economic recovery.

Eurozone interest rates are set firmly on hold and any signs of change will probably show up first in the European Central Bank's exceptional loan support measures, analysts say."The ECB will leave interest rates on hold at 1.0 percent at its November policy meeting," Capital Economics economist Jennifer McKeown said on Friday. Bank policymakers convene on Thursday.The rate has been at a record low since May and persistent concern over the strength of an anticipated eurozone economic recovery will keep it there for some time, experts say.

Eurozone interest rates are set firmly on hold and any signs of change will probably show up first in the European Central Bank's exceptional loan support measures, analysts say."The ECB will leave interest rates on hold at 1.0 percent at its November policy meeting," Capital Economics economist Jennifer McKeown said on Friday. Bank policymakers convene on Thursday.The rate has been at a record low since May and persistent concern over the strength of an anticipated eurozone economic recovery will keep it there for some time, experts say.

Following a relatively tiny two-day rally in the Euro the ECB blows its horn with a statement Credit Crunch AvertedThe euro rose, extending its first weekly gain versus the dollar in six weeks, as Italian bonds advanced and after European Central Bank President Mario Draghi said policy makers have averted a credit shortage.