ECB keeps rates at 1.0 pct, as expected

FRANKFURT, Nov 5 - The European Central Bank kept its main refinancing rate unchanged at a record low of 1.0 percent on Thursday, as expected by economists.

Markets are now turning their attention to President Jean-Claude Trichet's news conference at 1330 GMT, when he will explain the decision and give the ECB's latest assessment of the economy.

The ECB also kept its overnight deposit rate, which acts as a floor for money markets, at 0.25 percent and left its marginal lending rate at 1.75 percent.

The decision came as no surprise. All 78 economists in a Reuters poll expected the ECB to leave rates on hold.

The ECB began cutting rates in October 2008 as the financial crisis wreaked havoc in the euro zone economy, taking them from 4.25 percent to their current record low of 1.0 percent in May.

Since the ECB's October meeting, data has broadly supported the view that recovery is progressing in the euro zone.

The Bank of England also kept rates on hold earlier on Thursday, leaving them at a record low of 0.5 percent.