FX Week

ECB under fire as rates stay on hold

MARKET NEWS

FRANKFURT -- The European Central Bank surprised market participants last week by leaving interest rates on hold, in spite of mounting economic evidence suggesting a cut is needed.

"There is certainly a lot of disappointment in the market," Jane Foley, currency strategist at Barclays Capital in London told FX Week. "This decision has potentially negative implications for the growth outlook in Europe, and the market is very focused on growth at the moment."

ECB president Wim Duisenberg struck a