The European Central Bank left interest rates unchanged at 2.00 per cent as expected today, after recent economic data suggested a brighter outlook for euro zone growth.
The ECB has not moved its benchmark rate since June 2003, and improvements in manufacturing and services indicators in the past month have reduced earlier pressure on the central bank to lower the cost of borrowing and stimulate growth.
Bundesbank Vice President Juergen Stark also said in a newspaper interview published on Thursday that inflationary pressures were not building up in the euro zone - a comment that indicated the ECB was happy to remain on hold a while longer.
Earlier today, the Bank of England cut its key interest rate by 25 basis points to 4.5 percent, as expected, given slowing growth.
ECB President Jean-Claude Trichet will not be hosting his usual monthly news conference after the euro-zone rate decision as the central bank 's Governing Council, as usual in August, conferred this month by telephone.
It will provide insight into its rate decision next Thursday, however, when the ECB releases its monthly bulletin.
The ECB also said it would maintain its marginal lending rate at 3.00 percent and the rate it offers on deposits at 1.00 percent.