ECB leaves interest rates unchanged

The European Central Bank has left short term interest rates in the eurozone unchanged at two per cent.

Following the bank's monthly governors meeting in Helsinki, ECB president Jean-Claude Trichet reiterated the eurozone will see a "gradual recovery" with rising exports and consumer spending.

"Accordingly", he confirmed, "we did not change our assessment of the monetary policy stance and left key ECB interest rates at their current low levels."

And he insisted price stability - keeping inflation close to two per cent - will be maintained over the medium term.

But the bank chief voiced two reasons for concern.

Inflation could rise to "two per cent or somewhat above" over the next few months, Trichet said, although he insisted "over longer horizons we expect inflation rates to remain (around two per cent)".

And he noted the rise in oil prices which hit a 14 year high recently.

"The increase in commodity prices in general, and oil prices in particular, may pose an upside risk to price stability," he told journalists.

And he called on OPEC to regulate prices.

"I - along with others - are expecting partners who are responsible for oil prices to live up to this responsibility", he chastised.

"It is a matter of great importance."

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