The European Central Bank left interest rates unchanged at 2.00 percent as expected today, giving the euro zone economic recovery time to build even as surging oil prices boost inflation.
Analysts will now look to the ECB 's next interest rate decision and news conference on September 2 when the central bank will have fresh forecasts for euro zone growth and inflation.
"We are expecting a change of rhetoric from the ECB , with slightly more hawkish statements through the autumn but until we see a decisive turnaround in the labour market, which we don't see until the end of the year at least, we can't see the ECB being persuaded to raise rates," said James Nixon, an economist at Barclays Capital in London.
The euro was unchanged following the ECB rate announcement.
The ECB 's steady stance contrasted with the Bank of England, which as expected on Thursday raised rates by a quarter percentage point to 4.75 percent, its fifth rise since November, to stem a consumer spending spree and roaring house prices.
The ECB said it would make an announcement on euro zone requirements for collateral, assets that are deposited at the central bank by financial players participating in ECB refinancing operations.
Economists say the ECB is reluctant to tighten credit until it is sure that a return of domestic demand, needed to sustain a full-fledged recovery, will not be tripped up by high energy prices or a slowdown in the euro zone's main trading partners.
The ECB is focusing on the inflationary effects of rising oil prices but would be wrong to neglect the growth angle, said Robert Prior-Wandesforde, an economist at HSBC in London.
"That is the bigger risk, that (rising oil prices) stop any domestic recovery in its tracks. They've been high enough for long enough to do some damage," he said.