ECB leaves key interest rates unchanged

The European Central Bank (ECB) today retained the benchmark rates, continuing with its low interest rate regime to boost the region's economic recovery.

Battered by the global financial crisis, Europe is now looking at a nascent economic recovery and the 16-nation zone, which shares the common currency euro, came out of recession in the September quarter.

The apex bank, which sets the monetary policy for the euro zone, has kept the interest rate on main refinancing operations unchanged at 1 per cent.

ECB's Governing Council at its meeting also kept on hold the interest rates on the marginal lending facility and the deposit facility at 1.75 per cent and 0.25 per cent, respectively.

The central bank has been maintaining the interest rates since May this year, as part of its efforts to ensure cheap credit in the region.

Going by the data from Eurostat, the statistical agency for the European communities, Europe has exited recession in the third quarter.

In the September quarter, the GDP of the euro zone and 27-nation European Union grew by 0.4 per cent and 0.3 per cent, respectively.

The world's largest economy, the US, has been maintaining near-zero interest rate regime for many months, in the wake of the financial meltdown.