European interest rates steady

The European Central Bank left interest rates unchanged yesterday, indicating that uncertainty over a possible war in Iraq is putting the bank off cutting rates for now despite the continent's sluggish economy.

The ECB's main refinancing rate remained at 2.75 per cent, where it has stood since a half-percentage-point cut on December 5.

Earlier, the Bank of England made its first rate cut in 14 months, reducing its base lending rate by a quarter percentage point to 3.75 per cent. Fears of a manufacturing downturn were widely believed to have influenced that move.