LONDON, Feb 8: European stock markets sagged on Thursday as investors awaited key interest rate calls in both Britain and the euro zone, despite a raft of positive earnings news, dealers said.The European Central Bank was forecast to freeze euro zone borrowing costs later Thursday at 3.50 per cent, while the Bank of England was also expected to leave interest rates unchanged at 5.25 percent.

Investors track monetary policy decisions because higher borrowing costs translate into higher debt repayments -- and increased costs for companies.

The FTSE index of leading shares fell 0.22 per cent to 6,355.50 points, Frankfurt's DAX 30 index lost 0.05 per cent to 6,911.80 points and in Paris the CAC 40 shed 0.10 per cent to 5,697.33.

The DJ Euro Stoxx 50 index of eurozone blue chip shares eased 0.04 per cent to 4,249.52 points.

The euro stood at 1.2986 dollars.—AFP