European Central Bank keeps rates on hold

(AP) — European Central Bank President Jean-Claude Trichet acidly dismissed speculation that Greece may leave the euro, saying he would not comment on "absurd hypotheses."

Trichet was asked about Greece's troubles at a news conference after the bank kept its main refinancing rate unchanged at a historic low of 1 percent at Thursday's meeting.

Greece's budget crisis, with a deficit of 12 percent of gross domestic product, has shocked markets and shaken the European Union.

Trichet said Greece and other countries with outsize deficits had to "implement appropriate and bold measures" to get their deficits in line with rules intended to support the euro currency.

"I do not comment myself on absurd hypotheses," he said in response to a question about Greece possibly leaving the euro.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

LONDON (AP) — European Central Bank President Jean-Claude Trichet says Europe's tentative economic recovery "is likely to remain uneven."

Trichet made the remark after the bank kept its main refinancing rate unchanged at a historic low of 1 percent at Thursday's meeting. He said the economy's pickup at the end of last year came from stimulus measures that "are of a temporary nature."

Still, he said risks to growth and inflation in the 16 countries that use the euro were "broadly balanced," which suggests rates are not headed up any time soon.

Markets were also waiting for any comment he makes on Greece's budget woes, which have shaken the European Union.