ECB leaves rates unchanged

The European Central Bank has left key interest rates unchanged, after a meeting on Thursday. But ECB President Jean-Claude Trichet is showing signs of withdrawing stimulus measures faster than anticipated ending long-term emergency loans and tightening the terms of its final 12-month tender.

And some see these moves as paving the way to raising rates as early as next year. Trichet himself has said these measures do not signal an immediate intention to raise rates.

However, some officials are concerned that leaving borrowing costs at a record low for too long will fuel asset bubbles and trigger inflation. And these could act to further undermine economic recovery in the region.