ECB keeps interest rate unchanged

The European Central Bank has kept its key interest rate unchanged at the historic low of 1%.

ECB President Jean-Claude Trichet said the current rates "remain appropriate" based on the bank's regular economic and monetary analyses.

Mr Trichet said that economic recovery in the euro area "is on track", although it is likely to remain uneven.

"Overall, the Governing Council expects the euro area economy to grow at a moderate pace in 2010, in an environment marked by continued uncertainty," Mr Trichet said.

"All in all, we expect price stability to be maintained over the medium term, thereby supporting the purchasing power of euro area households. Inflation expectations remain firmly anchored in line with the Governing Council’s aim of keeping inflation rates below, but close to, 2% over the medium term."

Mr Trichet reiterated that high levels of public deficit and debt "place an additional burden on monetary policy" in the euro zone.

"It is of paramount importance that the stability programme of each euro area country clearly defines the fiscal exit and consolidation strategies for the period ahead," he said.