Euro rates 'to remain low'

Eurozone interest rates are set to remain at a low level for a long time, experts have predicted.

A Reuters poll of 75 economists recorded a unanimous view that the European Central Bank (ECB) will leave the main refinancing operations rate at one per cent when the governing council meets on August 6th.

The economists went on to agree that there will be no monetary tightening until the fourth quarter of 2010.

Robert Barrie of Credit Suisse told the news source: "The economy is hopefully heading towards recovery but we are not likely to see growth until next year, so rates will be on hold for some time yet."

Such a situation could mean that those keen to buy a property in the eurozone - such as in France, Spain, Portugal, Italy or Cyprus - will be able to get a mortgage at a lower rate to fund this.

The main refinancing rate was lowered to its present level in May, having been as high at 3.75 per cent before the board's November 2008 meeting.

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