The European Central Bank (ECB) has kept eurozone interest rates on hold at a record low of 1% for the eighth month in a row.

The decision was widely expected by economists, with Europe still recovering from recession.

But it follows positive data on the eurozone, with industrial production found to be growing twice as quickly as expected.

Interest rates have been at 1% since May last year.

Greece fears

Economists argue that rates are unlikely to increase while eurozone inflation remains well below the ECB’s target of 2%.

There are also questions over the state of Europe’s economic recovery, with the state of Greece’s public fianances a particular concern.

Last year, Greece admitted that its budget deficit was expected to reach 12.5% of GDP, attracting the condemnation of the European Union.

The eurozone prohibits budget deficits of more than 3% of GDP.

Original Source – BBC