ECB keeps lending rates unchanged

FRANKFURT, Germany, June 5 (UPI) -- The European Central Bank said Thursday morning it would keep key lending rates unchanged at 4 percent.

When making the decision, bank president Jean-Claude Trichet said the Governing Council noted "risks to price stability over the medium term have increased further."

"It is our strong determination to secure a firm anchoring of medium and long-term inflation expectations in line with price stability," he said.

The bank, however, anticipates inflation to be "more persistent than previously anticipated," he said.

Prices in Europe will rise 3.2 percent to 3.6 percent in 2008 and between 1.8 percent and 3 percent in 2009, he said.