ECB keeps rates steady

The European Central Bank left its benchmark interest rate unchanged at 3% as expected.

The ECB has raised rates four times in the past ten months, but the Trichet suggested there is more tightening to come, possibly in October. "If our assumptions and baseline scenario continue to be confirmed, a progressive withdrawal of monetary accommodation will remain warranted," he said.

The tone of central bank's president, Jean-Claude Trichet, was notably hawkish: "strong vigilance remains of the essen