As expected the European Central Bank left the cost of borrowing in the euro zone unchanged on Thursday at a record low of one percent.
The Bank of England also made no change to its benchmark interest rate in the UK – which is at 0.5 percent.
ECB President Jean-Claude Trichet said inflation in the region could tick up in the next six months and predicted uneven economic growth for the euro zone.
He told reporters: “On the upside, the global economy and foreign trade may recover more strongly than projected, thereby further supporting euro area exports. On the downside, concerns remain related to new tensions in some financial markets segments and related confidence effects.”
Trichet said the ECB will keep pumping money into the system to address the persistent reluctance of the region’s banks to lend to each other and that unlimited liquidity will last until the end of this year.
Trichet confirmed the ECB will continue to buy euro government bonds even though critics have said that could push up inflation.
The euro rose, partly in reaction to his comments.