ECB keeps rates unchanged, lifts inflation forecast

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ECB keeps rates unchanged, lifts inflation forecast

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The European Central Bank (ECB) has kept interest rates unchanged at record lows, months after launching its historic stimulus package.

As expected, the main refinancing rate was left at 0.05 percent.

ECB President Mario Draghi said that the bank’s quantitative easing programme, launched earlier this year, was bearing fruit.

“The (eurozone) recovery is on track, exactly according to our projections. However, we had expected stronger figures,” Draghi said.

But he added that a “protracted period of very low interest rates causes a series of problems”, such as financial risks and volatility.

“Is this a good reason to change our monetary policy?,” Draghi continued. The answer is no.”“

The ECB has lifted its 2015 inflation forecast from 0 to 0.3 percent.

That amendment came on the back of data released this week by Eurostat showing a stronger than expected increase in consumer prices in May.