ECB leaves interest rates unchanged

The European Central Bank has decided to leave its interest rates unchanged amid increasing signs of economic stabilisation.

The decision was taken at the monthly meeting of the ECB's Governing Council in Frankfurt today.

The decision was widely expected and means that the key lending rate stays at a record low of 1%.

The bank is keeping interest rates down in a bid to stimulate lending across the Eurozone.

"The current rates remain appropriate, taking into account all the information and analyses that have become available since our last meeting," the ECB said in a statement.

The bank said that the latest information available supported the view that there are increasing signs of stabilisation in economic activity in the euro area and elsewhere.

"This is consistent with the expectation that the significant contraction in economic activity has come to an end and is now followed by a period of stabilisation and very gradual recovery."

The bank said it expected inflationary pressure over the medium term to remain low, and price stability to be maintained.