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FRANKFURT (Reuters) - The European Central Bank held its main interest rate at a record low of 0.75 percent on Thursday, holding fire after a pick-up in inflation last month offset pressure to breathe life into the flagging euro zone economy by easing borrowing costs.
Annual euro zone inflation accelerated to 2.6 percent in August from 2.4 percent in July, coming in stronger than expected and further above the ECB's target of just below 2 percent.
The ECB also left the interest rate on its deposit facility at 0.0 percent - a low it went to for the first time in July to encourage banks to lend overnight to other banks, where they receive a higher rate, currently about 0.1 percent.
The ECB held its marginal lending facility - or emergency borrowing rate - at 1.50 percent.
Writing by Paul Carrel