ECB keeps interest rates at 4 pct as expected

The European Central Bank, as expected, kept benchmark interest rates unchanged at 4.0 percent today policymakers weigh the risk of high inflation against concerns about euro zone economic growth.

ECB President Jean-Claude Trichet will present the Governing Council's latest economic assessment at a news conference in Athens later today.

Malta Central Bank Governor Michael Bonello is a member of the council.

All 83 economists polled by Reuters had expected rates to remain on hold this month, although most predict cuts to 3.5 percent by the end of 2008.

Trichet said a month ago that inflation risks were to the upside but the impact of the credit crisis was continuing while economic growth worries remained.

The ECB also left its marginal lending rate, at which banks can get emergency overnight loans, unchanged at 5.0 percent and the deposit rate stayed at 3.0 percent.