The European Central Bank (ECB) kept rates on hold today, leaving Greece's financial crisis to again take centre stage at the ECB meeting in Frankfurt, dpa reported. With a muted recovery underway and weak inflationary pressures, analysts predict the ECB will retain rates at their historic low of 1 per cent well into the year. Speaking at a press conference, ECB chief Jean-Claude Trichet said the Frankfurt-based bank was confident that Athens could reach its goal of slashing its budget deficit from almost 13 per cent of gross domestic product in 2009 to 3 per cent by 2012. "We expect and we are confident that the Greek government will take all the decisions that will permit them to reach that goal," said Trichet. Athens' plan bring Greece's deficit into line with the strict 3-per-cent rule for euro member states. The tough budgetary measures unveiled by Athens were "steps in the right direction," the ECB chief said following the meeting of the bank's 22-head rate-setting council in Frankfurt. All three countries have been battling to knock their finances into shape following the global downturn. The eurozone does not have a mechanism for bailing out member states which run into financial problems.
