The European Central Bank (ECB) has kept its benchmark interest rate at a record low of 0.25%.
ECB president Mario Draghi said rates would remain at present or lower levels for an extended period of time.
The ECB headquarters in Frankfurt. Photo: AFP
There had been speculation the bank might act to bolster fragile growth in the 18-nation euro bloc, the BBC reports.
With eurozone inflation falling below 1%, there is also concern about deflation as consumers delay purchases in the hope of prices falling further.
The eurozone economy grew only 0.1% in the third quarter, while inflation, at only 0.8%, remains below the ECB's goal of about 2%.
Mr Draghi told a news conference that the eurozone may experience a prolonged period of low inflation, to be followed by a gradual upward movement towards inflation rates below but close to 2% later on.
He said the economic risks for the eurozone remain on the downside and that the ECB is ready to take further decisive action using all available tools to spur a weak recovery.
In November, the ECB cut the rate to 0.25%, from 0.5%, which Mr Draghi said at the time was done because of continuing economic weakness among some eurozone members.
Mr Draghi told Thursday's news conference that the ECB was keeping a close eye on the low inflation rate, but said it was important to understand that the recent fall was in large part due to a technical adjustment of service sector data in Germany.
Following his comments that interest rates might stay low for some time, the euro fell to 82.27 pence, its lowest against sterling in a year.
