The interest rate for the eurozone has been kept at its record low of 0.25%, while in the UK interest rates are to remain at 0.5%.
The euro region rates have been the same since November 2013. The interest rate low in Britain has last for five years already. Analysts believe it will not rise until this time next year.
The British Chambers of Commerce are against an early increase saying it undermines the benefits of forward guidance to business, consumers and the markets. It has, though, been of cost to savers.
The European Central Bank predicts there will be a “prolonged period of low inflation” which is causing concern over the possibility of a period of deflation and keeping interest rates low for the moment.
The ECB says that inflation is expected to gradually rise to 2% but possibly not until 2016.
But the Bank remains optimistic that economies in the eurozone are on the mend with slow but welcome growth. It forecasts growth of 1.2% in the region for 2014.
The forecast was made with mention of possible threats such as “geopolitical risks such as tensions in Ukraine”.
The ECB noted such risks “could quickly become substantial and generate developments that are unforeseeable and potentially of great consequence".
