The European Central Bank held its key interest rate steady at 3.25 per cent today in its first regular policy meeting since its month-long summer break.
Analysts had not expected any change in the "refi" refinancing rate, which has remained at the same level since November 2001, and in London the euro was unchanged at 0.9762 dollars.
The bank left its two other key rates, the deposit and the marginal lending rates, also unchanged at 2.25 per cent and 4.25 per cent, respectively.
Returning from the summer recess, the policymakers face an economic and financial situation that has deteriorated substantially. Global growth forecasts have been lowered and financial markets are haunted by worries about double-dip recession and deflation.
Exacerbating the situation is the threat of a US-led attack on Iraq.
Recent euro zone data also showed a softer-than-expected economic recovery.
