ECB released monthly bulletin after holding rates steady at their historic record low of 1.00% in June. The governing council confirmed that the undergoing monetary measures adopted remains appropriate and suitable amid the fiscal crisis.

With regard growth, ECB expects the economy will expand at a moderate pace in 2010 and recovery will be uneven. Growth forecasts were raised this year to 1.0% from the prior estimates of 0.8% while next year they were reduced to 1.2% from 1.5% due to decline in consumer spending.

Concerning inflation, ECB mentioned that price pressures remain moderate and inflation will stabilize over the medium term as monetary measures confirm low inflation pressure. Also, they raised inflation estimates to 1.5% this year compared with the prior 1.2% and to 1.6% next year from 1.5%.