The European Central Bank (EBC) held its key interest rate steady as expected at its regular monthly policy-setting meeting today.
A bank spokesman said ECB policymakers had decided to maintain the "refi" re-financing rate at 3.25 per cent.
The decision had been widely anticipated by market analysts, who had said the bank was anxious to preserve European economic momentum.
In London, the euro was stable following the announcement, trading at 0.9742 dollars against 0.9744 just before the news.
But the Paris-based Organisation for Economic Co-operation and Development said that due to the reports predictions, it expected the ECB to raise interest rates by 25 basis points over the remainder of 2002.
It also said further increases could be expected in 2003.
AFP
