European Central Bank President Jean-Claude Trichet resisted pressure from economists to consider buying government bonds to help relieve the euro area's spreading fiscal crisis.
"We didn't discuss the matter," Mr Trichet told reporters today in Lisbon after the ECB's Governing Council left its benchmark interest rate at a record low of 1 per cent.
"I have nothing else to say on that. We call for decisive actions by governments to achieving a lasting and credible consolidation of public finances."
Council members met in Lisbon, the latest capital to be hit by the fiscal crisis, as investors looked to them to calm financial markets after a Greek bailout failed to assuage concerns about budget deficits from Portugal to Ireland.
The euro, which has dropped 11 per cent this year, today traded below $1.28 for the first time since March 2009. Asked whether the ECB is now acting to safeguard the currency union's stability, Mr Trichet said "we're inflexibly attached to price stability."
The ECB's currency benchmark rate is "appropriate," he said, indicating that officials see no immediate need to cut borrowing costs.
As the Greek situation has become more acute, policymaker fears of the problems spreading have increased.
ECB heavyweight Axel Weber warned of serious contagion risks yesterday. He also said that the situation required "previously unthinkable measures," although he stressed there were limits.
Portugal, Spain and Ireland are seen as most at risk of contagion. They all carry high deficits and have seen their borrowing costs rise sharply on the back of Greece's problems.
Analysts are also waiting to hear the rationale behind the ECB's move on Monday to suspend its minimum threshold for Greek debt, meaning the bonds will remain eligible as collateral regardless of the country credit ratings.
The decision - the second change to the ECB's borrowing rules in less than two months - will guarantee Greek banks access to cheap central bank funding, and economists are eager to hear why the exception was not extended to any government debt issued in the euro zone.
The Greek woes have also hardened expectations among economists that interest rates will stay on hold at their current record low until the first quarter of next year.