The European Central Bank (ECB) left its benchmark interest rate unchanged on Thursday.
This marks the fifth consecutive quarter that the central bank has held rates steady at 0.00 percent and will come as little surprise to market watchers, who were largely anticipating a continuation of the status quo.
A slightly more dovish tone from ECB President Mario Draghi was, however, anticipated after reports leaked on Wednesday pointed to a possible shift in the bank’s assessment of the economic prospects of the region. Draghi is due to speak in front of the media at 1:30 p.m. London time.
Economic indicators have shown a more resilient euro area and inflation has neared the central bank’s target of below 2 percent, though core inflation figures remain subdued.
The Bloomberg report, which was attributed to unnamed euro-area officials, suggested that the ECB would show consumer-price growth falling to around 1.5 percent over the next three years, down from March predictions which estimated growth of between 1.6 percent and 1.7 percent.
The euro fell more than 0.6 percent to $1.1205 on the news. The shared currency has since shifted up to $1.1229.
Saxo Bank’s John Hardy told CNBC ahead of the announcement that he believed any immediate dip in the euro during Thursday’s meeting would be short-lived, but added that the leak may have been used to prevent a euro rally.
“I think the dovish inflation forecasts that were leaked were a way to avoid the euro rallying – which I think it will eventually in the wake of today’s meeting, even if there is a brief dip because very little new is actually announced,” he noted.
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– CNBC’s Silvia Amaro contributed to this report.