European Central Bank council members met for their regular policy meeting today and are expected to hold interest rates steady.
An uneven recovery of the euro zone economy and an uncertain inflationary outlook have reinforced financial markets' view that the ECB will leave its benchmark interest rate unchanged at 3.25 per cent, where it has been since November.
The ECB is due to announce its rate decision at 12.45 p.m., followed by a news conference with ECB president Mr Wim Duisenberg at 1.30 p.m.
Mr Duisenberg and other policy makers have made clear in recent weeks that official interest rates are at the correct level.
Continued high oil prices and a strike by German engineering union IG Metall are also seen as potentially trumping the ECB's aim of bringing inflation sustainably below the bank's self-imposed 2 per cent target.
Also, a series of manufacturing surveys yesterday showed an expansion of manufacturing activity in Ireland, The Netherlands, and Greece. But Germany's Ifo economic research institute last week showed the recovery of Europe's largest economy is still weak.
