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ECB holds rates at record low 1 pct, as expected

Published 09/03/2009, 07:46 AM
Updated 09/03/2009, 07:48 AM

FRANKFURT, Sept 3 (Reuters) - The European Central Bank kept its main refinancing rate unchanged at a record low of 1.0 percent on Thursday, as expected by economists.

Markets are now turning their attention to President Jean-Claude Trichet's news conference at 1230 GMT, when he will explain the decision and present the ECB's updated staff projections for GDP and inflation.

The ECB also kept its overnight deposit rate, which acts as a floor for money markets, at 0.25 percent and left its marginal lending rate at 1.75 percent.

All 80 economists in a Reuters poll expected the ECB to leave rates on hold. [ECB/INT]

The ECB has lowered its rates from 4.25 percent since October as the financial crisis wreaked havoc in the euro zone economy and inflation risks have subsided.

Since the ECB's August meeting, figures have shown Germany and France came out of recession in the second quarter and upbeat survey data have fanned hopes that the euro zone economy may return to growth in the current quarter. (Reporting by Frankfurt newsroom; editing by David Stamp)

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