5 Dec 2009

European central bank withdraws some stimulus measures

10:20 am on 5 December 2009

The European Central Bank is to start withdrawing some of the emergency measures it introduced to support the economy.

It will withdraw some of its cheap short-term loans designed to boost the amount of money available in the markets and encourage bank lending, the BBC reports.

But ECB president Jean-Claude Trichet says it's not a precursor to higher interest rates, which have been left unchanged at 1%.

The central bank expects the eurozone economy to expand between 0.1% and 1.5% next year, compared with a previous prediction that varied between a contraction of 0.5% and 0.9%.

Separately, official figures confirm the eurozone economy grew by 0.4% in the September quarter.