2018.04.2620:41:00UTC+00ECB Keeps Rates Steady, Reaffirms Ultra-Easy Monetary Policy

The ECB's interest rate on its main refinancing operations and the interest rates on the marginal lending facility and the deposit facility is unchanged at zero, 0.25 and -0.40 percent respectively.

ECB President Mario Draghi expressed uncertainty about what had been going on — whether recent economic data pointed to “the beginning of a decline or simply a normalization following a period of very strong growth.”

Draghi said "underlying strength" in the eurozone's economy continued to support the bank's confidence despite signs of "moderation" in recent weeks. He added an "ample degree of monetary stimulus" remained necessary over the coming months.

The ECB has promised to continue the stimulus at least until September, and most analysts expect it to begin tapering the program soon after that. Many analysts now expect the central bank to provide a clearer picture of its intentions at its next meeting, in June.

2017 was the strongest in a decade for economic expansion in the euro bloc. However a recent slump in investor morale since the beginning of this year might threaten the ECB's inflation outlook.

The prospect of a full-scale trade war could also quickly hurt expansion in the region — a potential risk highlighted by policymakers at Europe's central bank last month. Draghi said risks "related to global factors, including the threat of protectionism, have become more prominent."

A stronger single currency would also most likely cap already weak inflation in the eurozone — a persistent predicament for the ECB.

The euro dropped against the dollar after Draghi's comments, a sign that they may have made traders more pessimistic about the outlook for the eurozone.