ECB keeps rates unchanged at 1,25%.

As expected, the European Central Bank will keep interest rates unchanged at 1,25%, after the monetary tightening carried out in April for the first time after 2 years. Neither did the marginal rate and that on deposits change, which remained stable at 2% and 0,5% respectively.
However, an increase in the cost of money is expected in July to address the price pressure in the euro area, also due to the need to help Greece in a new plan to get out of the crisis.
This hypothesis is confirmed by the declaration of Jean Claude Tricher, president of the ECB, on the need to exercise "close surveillance" on the trend of prices in the Eurozone and on the risks of an increase in inflation. The market interprets these words as indicative of the willingness of central bankers to raise the key rate in July, because Trichet had used the same expression in March, before raising rates in April.
The ECB has declared that the expected inflation for this year is 2,6% (range 2,5%-2,7%), well above the target which sets it at less than 2% and up compared to the latest estimate for March (range 2,0%-2,6%). This rise in expectations could be used as justification for the hike in interest rates – which will likely start with a 25 basis point addition, to 1,50%, next month.
The Bank of England also announced this morning that it will keep rates stable at 0,5% for the twenty-seventh consecutive month. It is the sign of a weak domestic economy and a consequence of high inflation at 4,5% (well above the 2% target).