Analytics, Banks, Economics, EU – Baltic States, Financial Services, GDP

The ECB now expects the 19-member euro area to contract by 8% this year after forecasting an 8.7-% slump in June.

The ECB expects growth to pick up 5% in 2021 and 3.2% in 2022.

"Incoming data suggests a strong rebound in activity," said ECB head Christine Lagarde, but added: "The strength of the recovery remains surrounded by continuing certainty."

The ECB sees inflation averaging 0.3% this year before rising to 1% next year and 1.3% in 2022.

The European Central Bank's governing council left its key rates and crisis-fighting stimulus programs unchanged Thursday, a spokeswoman said, as the eurozone continues to battle the pandemic-induced downturn.

As expected, the Frankfurt-based ECB held the rate on its main refinancing operations at zero.

The rate on the ECB's marginal lending facility remains at 0.25 percent and the deposit facility rate stays at -0.5%.4

The bank also left its pandemic emergency bond-buying scheme worth EUR 1.35 trillion unchanged.