The European Central Bank (ECB) has kept its benchmark interest rate at its record low of 0.25%.
The bank slightly raised its forecast for growth to 1.2% in 2014, but dropped its inflation estimate.
Eurozone interest rates have remained unchanged since November 2013, when the bank said it expected “a prolonged period of low inflation”.
In February, eurozone inflation was at 0.8%, well below the ECB’s 2% target, which has prompted deflation worries.
However, the ECB has been confident that eurozone economies are recovering from recession.
The bank decided to leave the rate unchanged as there were continued signs of recovery, ECB president Mario Draghi told a news conference in Frankfurt.
“We saw our baseline by and large confirmed,” he said. “There is a continuation of a modest recovery.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.