The European Central Bank (ECB) on Thursday decided to keep key interest rates in the euro zone unchanged at 1 percent, the bank's president said.
"On the basis of its regular economic and monetary analyses, the Governing Council decided to leave the key ECB interest rates unchanged," ECB President Jean-Claude Trichet said at a news conference.
This was the fourth straight month for the 16-country euro zone's central bank to hold its rates at a record-low 1 percent to keep cash flowing amidst the ongoing financial crisis.
Meanwhile, Trichet said the Frankfurt-based bank had revised upward its forecast for GDP growth, "reflecting mainly the most recent positive developments and information."
The ECB predicted the euro zone GDP would grow at a range between minus 4.4 percent to minus 3.8 percent this year and between minus 0.5 percent and positive 0.9 percent in 2010.
In June, the bank forecast GDP growth ranging between minus 5.1percent to minus 4.1 percent this year, and between minus 1 percent to nearly half a percent in 2010.
According to Eurostat's first estimate, economic activity in the euro area declined only slightly in the second quarter of 2009,contracting by 0.1 percent compared with the previous quarter, Trichet said.
"Survey indicators for the third quarter of 2009 support the view that the euro area economy is stabilising further," he said.
However, the ECB chief warned that "uncertainty remains high" and "the recovery is expected to be rather uneven"./.