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Thursday, August 2, 2007

ECB Leaves Rate at 4 Percent, May Raise in September

" The European Central Bank left its benchmark interest rate at a six-year high of 4 percent today after eight increases since late 2005.

President Jean-Claude Trichet will hold a press conference at 2:30 p.m. in Frankfurt, in a break with normal procedure during the bank's summer recess. Some economists say he will signal another rate increase next month. Trichet's comments will be embargoed until no later than 3:30 p.m. local time, the ECB said.

Trichet has typically announced plans to increase borrowing costs one month in advance by pledging ``strong vigilance'' on inflation. The ECB says it must contain price increases as the economy of the 13 nations using the euro expands at close to the fastest pace since 2000. "

Source: ECB Leaves Rate at 4 Percent, May Raise in September (Update1) (http://www.bloomberg.com/apps/news?pid=20601087&sid=aMQ7coIxw6Vc&refer=home)