The European Central Bank (ECB) on Thursday left its key interest rate on hold at 4.0 percent for fears of further inflation in the eurozone, local media reported.
ECB Governor Jean-Claude Trichet told reporters in Frankfurt that "high uncertainty" about the economic outlook remains, considering a stronger euro, soaring oil prices as well as the subprime crisis in the United States.
However, "the upside risk" remains inflation and ECB's prior task is still to control price stability in the 15-nation eurozone, he said.
The Frankfurt-based ECB announced its decision as inflation in the eurozone remains at a record high of 3.2 percent since the beginning of the year, well above the bank's goal of 2 percent.
Meanwhile, the euro surged to an all-time high of over 1.53 U.S. dollars on Thursday, raising concerns that the strong currency may seriously hurt the exports of European economies.
Oil prices also soared to a record high of more than 104 U.S. dollars a barrel on Thursday.
Analysts have expected the eurozone economy to grow 1.8 percent this year, down from 2.7 percent last year.
The ECB will probably cut its rate to 3.5 percent by the end of the year in a move to boost economic confidence, analysts said.
Source:Xinhua
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