The European Central Bank (ECB) held its key interest rates steady as expected at the regular fortnightly meeting of its governing council yesterday. And with the euro zone economy showing increasing signs of recovery, economists predicted rates would stay where they were for the remainder of the year.

The ECB, which determines monetary policy for the 11-nation euro zone, held its key refinancing ("refi") rate steady at 2.5 per cent.

Meanwhile, data published yesterday by the Ifo economics institute in Munich showed a pick-up in business confidence in Germany, the biggest economy in the euro zone, following a spate of other positive data last week.