FRANKFURT (Reuters) - European Central Bank policymakers left the benchmark euro zone interest rate at 4.0 percent as expected on Thursday, taking time to assess the impact of recent trouble on global credit markets.A sharp tightening in euro money market conditions since the ECB's last meeting on August 2 had persuaded analysts that the central bank would postpone a rate rise which they believe ECB President Jean-Claude Trichet had previously signaled.
"The balance of risks was clearly tilted in favor of unchanged rates," said Marco Annunziata, chief economist at UniCredit in London. "If the situation stabilizes, (the ECB) can resume hiking next month with no meaningful impact on inflation risks."
Earlier on Thursday, the Bank of England left its benchmark rate unchanged at 5.75 percent.
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