Citing a continued weakness in the economic recovery, the European Central Bank held its overnight bank-to-bank lending rate at 1 percent on Thursday.

ECB President Jean-Claude Trichet said at a news conference in Germany that although recent data "support the view that the economic recovery in the euro area is continuing in 2010 ... the financial crisis is expected to have a dampening effect on economic growth."

Policy makers at the bank expect moderate growth this year. The bank's Governing Council expect inflation to remain "below, but close to 2 percent over the medium term," Trichet further said.

He also added that the ECB, called for "decisive actions by governments" to consolidate public debt. Moving quickly on debt issues would restore public confidence "in the capacity of governments to regain sustainability."

"In this context," the bank approved of the international relief program put in place to help Greece dig itself out of debt, he said. (With Inputs from Agencies)