ECB maintains key interest rates

FRANKFURT, Germany, Aug. 6 (UPI) -- The European Central Bank said Thursday it would keep its key lending rates unchanged.

The bank-to-bank lending rate was trimmed to 1 percent in May following a series of reductions to meet the downturn in the economy.

At a press conference explaining Thursday's decision, Bank President Jean-Claude Trichet said there were "increasingly signs that the global recession is bottoming out ... however, economic activity over the remainder of the year is expected to remain weak."

Trichet called the risks to a recovery "balanced," with the possibility of stimulus packages providing more of a boost than currently expected. On the flip side, he said, the bank was concerned with inflation in commodities, including oil, and protectionist policies that could slow a recovery.