ECB keeps interest rates unchanged

The European Central Bank left its benchmark interest rate unchanged at a record low of 1.0 percent today, as expected.

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

Seventy-six of 78 economists in a Reuters poll had expected the ECB to leave rates on hold. Two said it would cut them.

"This was no surprise," said Natixis economist Sylvain Broyer. "I understand that they want to hold ammunition in rates, but I hope to see further moves towards more dovish statements."

Euro zone inflation is low and the economy is shrinking fast, although some data have shown signs of improvement.

Markets are also keen to see whether Trichet gives any signals that the ECB plans to keep rates low for a lengthy period, or alternatively, whether they could be reduced further.

Another focus will be on whether he hints that the ECB is considering other types of assets for potential purchase apart from covered bonds.

Earlier the Bank of England also kept its rates unchanged.