Europe’s key loan rate at 1 percent

The European Central Bank left its benchmark interest rate unchanged at 1 percent, holding steady as it waits to whether a massive infusion of credit into the banking system will help loosen up lending to consumers and businesses in the euro zone's struggling economy.

Bank President Jean-Claude Trichet said the ECB was pleased by the demand for its record euro442 billion ($623 billion) 12-month loans offered to banks last week, but wouldn't comment about what more it might do.

"We were happy with the result of this liquidity supply. It is of course emblematic of what we've been doing in enhanced credit support. ...The amplitude of the operation in our eyes, is proof of the pertinence of the challenge of our enhanced credit supply," he said.

Trichet said the move was expected to further strengthen the liquidity position of banks and to support the normalization of money markets and the extension of credit to the economy. It comes on top of cutting the bank's main interest rate from 4.25 percent to 1 percent by stages. (AP)