The European Central Bank dropped forward guidance indicating that it was prepared to step up its quantitative easing if conditions worsen, in another step toward normalizing its historically loose monetary policy.
As expected, it left its key rates unchanged, with the main refinancing rate at 0.00%, the marginal lending facility at 0.25% and the deposit facility at negative 0.40%.
The central bank also said it would retain its asset-buying program at the monthly pace of €30 billion. The program is set to run until the end of September.
The euro, which had been falling against the dollar before the announcement, gained less than 0.1% to 1.2417 at 2:12 p.m. in Frankfurt.
The statement removed forward guidance that indicated that the ECB would increase its asset-buying program "if the outlook becomes less favorable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation."
Eurozone unemployment reached 8.6% in January, the lowest it had been in four decades, UBS economists said in a note to clients before the announcement.
"Against this backdrop, core inflation should continue its slow uptrend," prompting the ECB to gradually tighten its forward guidance, it said.
