European Central Bank keeps interest rates on hold despite sluggish growth

The ECB decision came after surveys of the private sector across the 20-member currency bloc showed a modest rise in output. Photograph: Ronald Wittek/EPA

The European Central Bank has kept interest rates on hold as figures showed the eurozone economy maintaining a steady pace of economic growth amid low inflation.

In what was widely expected to be a pause before further cuts later in the year, the Frankfurt-based central bank shunned calls to reduce the cost of borrowing and held its main interest rate at 2% and the deposit rate at 2.15%.