ECB holds rates at historic low

The ECB's monthly meeting in Paris came at a time of renewed market jitters prompted by the US government shutdown and renewed concerns about the eurozone sparked by a coalition crisis in Italy.

Analysts expect ECB chief Mario Draghi to reiterate during a press conference that the Frankfurt-based bank's key interest rates will remain low for the foreseeable future.

Draghi is not expected to announce any monetary easing measures such as heading off the contraction in credit by rolling out new cheap loans.

Despite signs that the 17-member eurozone economy has also picked up speed since the ECB last met four weeks ago, analysts believe the recovery has been too weak to allow the ECB to switch to a monetary tightening.

In comments last week to the European Parliament, Draghi made it clear that the ECB stands ready to introduce new measures to keep money market rates low through a new long-term refinancing operation (LTRO) for banks.

This follows concerns that a move by the US Federal Reserve to tighten monetary policy could send rates higher around the world, as a result undercutting the eurozone recovery.

A drop in annual inflation in the eurozone to a three-and-a-half-year low in September to 1.1%, means the ECB also has room to consider a further rate cut if the economy faltered in the coming months, analysts say.