The European Central Bank left interest rates on hold and unveiled no other measures to bolster a fragile Eurozone recovery on Thursday despite forecasting low inflation for years to come. The ECB left its main interest rate at 0.25%, a move generally expected by markets, and held the deposit rate it pays banks for holding their money overnight at zero. <p>

New projections from ECB staff put inflation at 1.0% this year, 1.3% in 2015 and 1.5% in 2016 – below its target of close to 2.0% all the way through the forecast period. ECB President Mario Draghi told a news conference that the latest economic information suggested recovery was on track and needed no extra push for now. <p>

<b>The ECB is running out of room to cut interest rates, thereby putting the onus on alternative policy measures. But even the much mooted ending of “sterilisation” of bond purchases never materialised, suggesting to us that an air of complacency is setting in at the central bank, which is somewhat worrying.
<p><h5>Alan McQuaid</h5>


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