Meeting in Frankfurt today, the European Central Bank has voted to leave interest rates on hold at a record low of 1%, and is showing no signs of hurry in rolling back the fiscal stimulus packages. While recent figures in the eurozone have shown evidence of an emerging recovery, consumer and business confidence remains fragile and some economists are predicting the base rate could remain at 1% until the third quarter of 2010.

The ECB is also expected to revise economic forecasts upwards, following growth in France and Germany in the second quarter. Manufacturing has improved across the region while the service and construction sectors are bottoming out. The inflation forecast is expected to remain stable. Sweden's Riksbank also voted to keep interest rate on hold at 0.25%.

The euro exchange rate is currently at GBP0.8747 and USD1.4337.

The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.