ECB keeps interest rate unchanged

Expectations are that the bank will increase its level of support,one sign of how quickly the debt crisis has sharpened worries that a financially weak member of the eurozone such as Portugal might join Greece and Ireland in needing a bailout and,even more dangerous,that larger countries such as Spain might run into trouble as well. More support would be a turnaround for the bank. After last months policy meeting,Trichet gave every indication that the central bank was looking at calling time on several props for the financial system introduced since the crisis took hold in August 2007.

But since Trichets last post-meeting press conference on November 4,the markets have dealt the 16-country eurozone a series of blows that have once again called into question the future of the euro currency itself.

The market pressure grew more and more acute on Ireland,eventually forcing its government to follow Greece and request a bailout from its partners in Europe and the IMF. The response to its euro 67 billion 89 billion bailout has been lukewarm at best as investors fret about the possibility that other countries will get dragged into the bond market mire and find themselves unable to borrow in the money markets.