ECB LEAVES INTEREST RATES UNCHANGED.

The Governing Council of the European Central Bank decided at its July 5 meeting to leave the key Euro-zone interest rate unchanged at 4.5%. Despite political and economic pressure in favour of a further cut in the cost of borrowing (the last time the rate was cut was when a quarter of a percentage point was lopped off on May 10), the Bank regards the current level as "appropriate" to keep inflation under the 2% mark, its price stability target. According to ECB President, Wim Duisenberg, this rate will remain in force "for some time to come" because inflation is not likely to be brought back under 2% until next year and even then it will be touch and go. Following the July 5 decision, the Euro-Dollar exchange rate fell back below 85 cents - its lowest rate since last October and fast approaching another all-time low against the greenback.Despite this further fall, Wim Duisenberg reiterated his belief that the Euro has considerable...