The central bank doubled its main interest rate, but at the cost of killing consumer demand.
The European Central Bank is expected to hold its main interest rate steady at 4.0% in the coming months.
For the first time in 10 months the European Central Bank has cut its main interest rate, from 0.75% to 0.50%.
There was unanimity in the decision to keep the bank's main interest rate unchanged at the record low of 0.5 percent.
India has cut its main interest rate for the first time in nine months in an attempt to revive economic growth.
The last time the ECB made a change to its main interest rate was in July, when it was cut from 1%.
The UK's Bank of England also announced on Thursday that it would be keeping its main interest rate on hold at 0.5%.
Siddhartha Sanyal, chief India economist with Barclays Capital, said he now expected the main interest rate to be cut to 7.75% from 8%.
This was despite disappointment that the European Central Bank had cut its main interest rate on Thursday, by just a quarter of a percentage point, to 1.25%.
The exception is the ECB's Long Term Refinancing Operation (LTRO), which provides banks with three-year liquidity at its main interest rate, currently 1%, against a wide array of collateral.
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It raised its main interest rate to 4.25% on July 3rd to show that it was serious about controlling inflation, which is well above its target ceiling of 2%.
But Jean-Claude Trichet, its boss, said on December 2nd that banks would continue to have access to ECB funds at its main interest rate, currently 1%, for up to three months.
Mr Coogan warned that the bank's efforts had yet to have much effect on the London Inter-Bank Offered Rate (Libor), the main interest rate governing the cost of lending between banks.
However, the main focus on Thursday will likely center on developments in Bratislava, the capital of Slovakia, where the European Central Bank is expected to cut its main interest rate by a further quarter of a percentage point to 0.5 percent.
The report shows inflation falling to 2 per cent by mid 2015, on the basis that the main bank interest rate remains at its current rock bottom of 0.5 per cent into 2016.
Two main factors determine the interest rate the bonds will yield.
The Federal Reserve's decision on September 29th to lower its main short-term interest rate by a quarter point is simply an injection of Vitamin B-12, meant to give a healthy economy a bit more vigour.
"Activity on the Main Board will be slow mainly because of interest rate concerns, " says Patrick Lim, president of the Malaysian Investors' Association.
Investors called on the Bank of Japan, which three weeks ago reduced a peripheral interest rate, to cut the main rate, raised from 0% to 0.5% in August on hopes of a recovery in the country's economy.
However, the Central Bank only pays interest on this liability at the Main Refinancing Operation (MRO) rate, which is currently only 0.75%.
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Federal Reserve Chairman Ben Bernanke, who thinks his main job is to create full employment in America, believes that a zero interest rate regime will stimulate investment.
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Deutsche Bank says the main risk to gold prices would be a turn in the U.S. interest-rate cycle and end to negative real interest rates.
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