ECB keeps the taps flowing as it braces itself for Deflation

 The European Central Bank left interest rates unchanged, while ECB President Mario Draghi said monetary authorities will not consider loosening policy to stave off deflationary pressures for now.

 The ECB voted to leave interest rates across the eurozone unchanged at a record-low 0.25%, but the common currency strengthened after ECB President Mario Draghi did not outline any new measures to shore up slowing inflation.

Draghi said the ECB sees a protracted period of low inflation, not full blown deflation, and reiterated that the bank is “monitoring developments closely" and won't likely make any decisions until the bank reviews more economic indicators, which markets interpreted as March at the earliest.

Deflationary concerns arose last week after data revealed that the annual rate of inflation slowed to 0.7% in January.