Forex

FRANKFURT (Thomson Financial) - The European Central Bank said it decided to leave its leading interest rates unchanged at today's governing council meeting.

The minimum bid rate on main refinancing operations remains at 4.00 pct.

The deposit rate remains at 3.00 pct and the rate on the marginal lending facility at 5.00 pct.

The decision was in line with market expectations.

The persistently high rate of euro zone inflation means that the ECB cannot cut rates in response to slowing euro zone growth for the moment, economists said.

Inflation remained at 3.2 pct in February, the highest level recorded since the launch of the euro.

ECB president Jean-Claude Trichet is due to hold a news conference at 2.30 pm.

Trichet is expected to maintain a hawkish tone on inflation risks while also acknowledging that risks to the growth outlook have increased.

Markets will also be focusing on the the ECB's latest inflation and growth forecasts for indications on the future scope for rate cuts.

The ECB is likely to wait for signs of a decline in inflation pressures and a more protracted slowdown in growth before cutting rates, economists said.