The European Central Bank (ECB) kept its main interest rate on hold at a record low of 1% for the ninth month running today, in line with expectation.
The Central Bank also maintained its overnight deposit rate, which acts as a floor for money markets, at 0.25% and left its marginal lending rate at 1.75%.
Explaining the decision, ECB president Jean-Claude Trichet said interest rates remained 'appropriate'.
He added economic activity in the Eurozone grew around the turn of the year, lifted by a recovery in exports, but warned to expect only 'moderate' growth in the Eurozone economy this year, in an uneven recovery which would be subject to risks.
The ECB will decide in early March on the timescale for phasing out some of the measures taken by the ECB during the financial crisis, the President said.
Trichet also said the ECB was 'confident' the Greek government would take the necessary steps to rein its huge budget deficit back within EU limits by 2012, following yesterday's decision by the Central Bank to approve the country's economic action plan.
Greece has a public deficit estimated at around 12.7% of gross domestic product and debt equal to 113% of GDP, far above the respective 3% and 60% limits established for euro zone members.
Mr Trichet said many Eurozone members were facing high levels of debt and budget deficits, and would have to take steps to cut these.
Portugal and Spain are also threatened by big deficits and slumping competitiveness, made worse by the global economic crisis. Some analysts are predicting eventually some countries may be forced to exit the monetary union.
However ECB President Jean-Claude Trichet dismissed the speculation as 'absurd'.
Earlier, the Bank of England kept UK rates steady at their record low of 0.5%.
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