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European Central Bank keeps interest rate at 1.25%

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Forex Pros - The European Central Bank kept its benchmark interest rate unchanged for the second consecutive month in May, it announced on Thursday.

The ECB said it was maintaining the benchmark interest rate at 1.25%, in a widely expected move, after raising rates in April for the first time since May 2009.

ECB president Jean-Claude Trichet was to comment on the decision at a press conference later in the day.

Following the announcement, the euro was slightly higher against the U.S. dollar, with EUR/USD easing up 0.02% to hit 1.4830.

Meanwhile, European stock markets were broadly lower. The EURO STOXX 50 tumbled 1.25%, France's CAC 40 dropped 1.22%, Germany's DAX fell 0.7%, while the FTSE 100 declined 0.68%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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