FRANKFURT, Nov 3: The European Central Bank held its key interest rates steady as expected on Thursday, but could be preparing to raise them soon in view of growing inflationary dangers in the single currency area.

At its regular monthly interest rate-setting meeting here, the ECB held the minimum bid rate for its regular refinancing operations steady at two per cent, where it has been since June 2003.

And it also held its two other key rates — the deposit rate and the marginal lending rate — unchanged at one per cent and three per cent, respectively.

The ECB’s decision to maintain the status quo on rates came just two days after the United States Federal Reserve notched its key rates up by a quarter of a percentage point to four per cent, their highest level in more than four years, as the powerhouse US economy proves resilient to hurricanes and high energy costs.

And on Wednesday, the Norwegian central bank also raised its rates by a quarter-point.—AFP