ECB leaves interest rates unchanged

The European Central Bank is leaving interest rates unchanged.

The euro's recent rise against the US dollar has relieved pressure to counter inflation risks.

The ECB's key minimum refinancing rate is being held at 3.25%.

The Frankfurt-based Euro-bank hinted last month that the rate, which had remained steady for eight months, might soon be going up.

But the recent weakness on Wall Street and the euro's appreciation have caused a rethink.

Earlier this week, Euro-bank president Wim Duisenberg said the recent rise of the euro "will contribute to easing inflationary pressures".

But he added that the bank would continue to "closely monitor all relevant developments" that put price stability at risk.