The European Central Bank has kept its key interest rate on hold at 4.25%, resisting pressure for a rate cut.
Eurozone inflation fell to 3.6% last month but is still above its 2% target and ECB head Jean-Claude Trichet says inflation is his top priority.
Attention now turns to Mr Trichet's news conference at 1345 BST to see if he paves the way for future rate cuts.
Last week, Ireland became the eurozone's first economy to be formally in recession.
There is concern that the problems facing Europe's banks could send other economies into recession.
"In German KfW bank axes two directors over Lehman transfers ...
More cash is injected into banks ...
Eurozone rates on hold at 4.25% ...
Germany's Commerzbank Agrees to Buy Dresdner ...
Euro Falls as Economic Outlook Darkens in Europe ...
EU Parliament Raises Bar for Extremist Parties ... the past four days, the governments of no less than seven European countries were required to nationalise banks or guarantee the deposits of large cross-border institutions," US economics professor Nouriel Roubini said on Wednesday.
The ECB has been lending billions of euros to its struggling banks in an attempt to ease the credit crisis.
(BBC)
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