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ECB leaves rates alone
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January 20, 2000: 8:14 a.m. ET
Europe's central bank adopts wait-and-see approach to rising inflation
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LONDON (CNNfn) - The European Central Bank left interest rates unchanged Thursday at its regular bi-weekly meeting.
Most economists did not expect a rise in the cost of borrowing this week, although a majority expects a hike of about 25 basis points by the end of the first quarter.
Recent data indicates accelerating economic growth for European economies in 2000, raising the threat of inflation.
Prices have been rising in the 11-nation euro-zone in recent months, and German unions have proposed wage hikes around 5.5 percent in their annual wage round negotiations, which began in January.
December inflation in the region rose to 1.6 percent, up from 1.4 percent, approaching the ECB's 2.0 percent target level.
The ECB has raised rates once in its 13-month lifespan: last November it raised the key refinancing rate half a percentage point to 3.0 percent.
In an interview with CNN earlier this week, Bank of France governor Jean-Claude Trichet, who also sits on the ECB's governing council, said there was "no particular point of worry" regarding inflation.
Last week the Bank of England, which is not under the aegis of the ECB, raised its key short-term rate. 
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European Central Bank
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