The European Central Bank (ECB) maintained its key rate at 1 percent on Thursday, in line with analysts' expectations before hand.

"Based on its regular economic and monetary analyses, the Governing Council decided to leave the key ECB interest rates unchanged. The current rates remain appropriate," said ECB President Jean-Claude Trichet at a press conference to explain the decision.

A news survey of 54 economists predicted that ECB policy makers would keep the interest rate at 1 percent, according to local media reports.

"Price developments are expected to remain subdued over the policy-relevant horizon," said Trichet. "Medium to longer-term inflation expectations remain firmly anchored in line with the Governing Council's aim of keeping inflation rates below, but close to, 2 percent over the medium term."

"The latest information also confirms the expected improvement in economic activity in the second half of this year, with euro area real GDP growth returning to positive territory in the third quarter of 2009," said Trichet.

"The Governing Council expects the euro area economy to grow at a moderate pace in 2010," he said, adding that the recovery process was likely to be "uneven" and "high uncertainty" remained.

(Xinhua News Agency December 4, 2009)