ECB holds policy with rates at historic lows

Our second big central bank meeting of the day has seen no change.

The European Central Bank (ECB) is holding policy, as forecast by 54 of the 55 economists Reuters polled about the decision.

Most of those economists said that they expect rates to stay put until mid-2015, after the central bank cut its main rate to 0.25 per cent in November.

Jonathan Loynes, chief European economist at Capital Economics, says that pressure on the ECB to provide support for the Eurozone's recovery is "likely to continue to build".

"Another rate cut, and a negative deposit rate, is a clear possibility and we would not altogether rule out some form of asset purchases. Meanwhile, further falls in bank liquidity could prompt more LTRO-type loans. Either way, in contrast to some other central banks, it seems unlikely that the ECB’s work is yet done."