ECB likely to maintain its main lending rate at a record low of 1%

FRANKFURT: The European Central Bank governing council meets this week after European leaders moved to shore up Eurozone stability and as the US Federal Reserve mulls a second round of monetary stimulus.

The ECB is sure to maintain its main lending rate at a record low of 1.0%, analysts say, while focusing potentially tense talks on whether to continue unwinding its own unconventional measures.

A rift between ECB governors has opened over pursuing purchases of Eurozone government debt, with German central bank chief Axel Weber saying he will stick to his guns even if it means passing on a chance to be the next ECB president.

Weber insists the scheme should be phased out and said last week: “If that’s going to have implications for my future career, then I’d be happy to live with those consequences.”

Commerbank economist Michael Schubert said: “Behind closed doors ... the council is likely to discuss how to continue its gradual exit from unconventional measures” some urozone banks have come to depend upon. “Discussions could become even more heated at Thursday’s meeting,” he added. Growth in powerhouse Germany is strong now but Greece is still in recession and faces an unsettled political situation that could worsen its debt crisis.