The European Central Bank left its key interest rate unchanged at 2 per cent today as it balanced the danger that inflationary pressures could worsen against shaky business and consumer confidence.
Market analysts are looking for clues from ECB President Jean-Claude Trichet on the timing of a future rate rise when he holds a news conference this afternoon to explain the thinking behind the ECB Governing Council's decision.
Mixed data and signs of the global economy coming off the boil have made analysts question whether an ECB rate rise expected later this year might be delayed.
Analysts expect Mr Trichet to stress his vigilance on inflation and hope to get an insight into how soon rates may rise from whether he dwells on positive signs or negative economic data.
The third quarter of 2005 is the most frequently predicted time for a rate rise, although a significant number of analysts believe it will be later.
The euro zone's official interest rates have been at a historic 2 per cent low since June 2003, and ECB policymakers are concerned that this loose monetary policy is spurring credit and money supply growth, raising inflation risks down the road.
But euro zone economic growth is still fragile, and a premature rate rise could derail shaky business and consumer confidence.