The European Central Bank (ECB) has kept its main interest rate steady at a record low of 1 per cent.
The bank’s governing council decided this afternoon to maintain the rate and markets expect borrowing costs to be held at all-time lows for much of next year to help repair the region’s economy.
Sunil Kapadia, an economist at UBS, said: “This was entirely expected. We are not expecting any more additional non-standard measures. With the data in the market improving there is no compelling reason to do more right now.”
Jean-Claude Trichet, president of the ECB, will give a conference explaining the decision in more detail at 1230 GMT.
He said last week that the economy of Europe was in “uncharted waters”.
Last month, the