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| ECB keeps interest rates on hold at 0.25% | ECB keeps interest rates on hold at 0.25% |
| (about 1 hour later) | |
| The European Central Bank (ECB) has kept its benchmark interest rate at a record low of 0.25%. | The European Central Bank (ECB) has kept its benchmark interest rate at a record low of 0.25%. |
| Persistently low inflation across the euro-bloc has prompted growing calls that the ECB should cut rates to head off deflation risks. | |
| But rate-setters at the Bank may have been buoyed by recent economic data pointing to a stronger recovery and improved financing conditions. | But rate-setters at the Bank may have been buoyed by recent economic data pointing to a stronger recovery and improved financing conditions. |
| Earlier on Thursday, the UK's Bank of England held interest rates at 0.5%. | Earlier on Thursday, the UK's Bank of England held interest rates at 0.5%. |
| Eurozone interest rates have been unchanged since November 2013. | Eurozone interest rates have been unchanged since November 2013. |
| ECB president Mario Draghi has been saying for months that the bank expected "a prolonged period of low inflation". | ECB president Mario Draghi has been saying for months that the bank expected "a prolonged period of low inflation". |
| Eurozone inflation in April was 0.7%, up from 0.5% in March, but still well below the ECB's target of about 2%. | Eurozone inflation in April was 0.7%, up from 0.5% in March, but still well below the ECB's target of about 2%. |
| Mr Draghi said in April that if the inflation outlook was to deteriorate, the ECB could respond with a "broad-based asset purchase programme", probably quantitative easing - effectively printing money to buy assets. | |
| Speaking at a press conference after the latest ECB decision, Mr Draghi said that the "moderate economic recovery... is proceeding in line with our expectations". | |
| However, he added that the ECB was "comfortable with acting next time", raising expectations that the bank could alter policy in June and sending the value of the euro lower. | |
| Luke Bartholomew, investment manager at Aberdeen Asset Management, said: "ECB meetings are starting to have a Waiting for Godot feel: every month we think Draghi can't go any longer without doing something and every month we're left waiting." |