There will be no change to interest rates this month. The European Central Bank (ECB) is keeping its key lending rate at 0.5%.

Last month the Bank cut that rate by a quarter point from 0.75%.

It is an historic low - but despite that some analysts are predicting it could be reduced even further next month.

Newstalk's Business Editor Ian Guider says there could be a further cut down the line.

"They have been saying in recent weeks 'lets see - there might be more room to cut once again if the economy gets worse'" he said.

"We know in the last couple of days figures out from the Eurozone - record high unemployment across the Eurozone, the European economy going into reverse gear".

"They are giving themselves room - probably another few weeks - to see if that previous cut had any impact, and they they could go again" he added.

The bank says that Euro area export growth should benefit from a recovery in global demand, while domestic demand should be supported by the stance of monetary policy and by the recent real income gains due to lower oil prices and generally lower inflation later this year.

According to a flash estimate from Eurostat, Euro area annual inflation was 1.4% in May 2013, up from 1.2% in April. This increase was accounted for in particular by a rebound in services prices related to an unwinding of the Easter effect and an increase in food prices.

Speaking after the monthly meeting in Frankfurt the ECB Governor Mario Draghi admitted they will be keeping a close eye on the economic situation in the Eurozone.