European Central Bank holds interest rates steady

The European Central Bank (ECB) took no action on Thursday, leaving its benchmark interest rates unchanged.

The decision takes place as concerns mount over Italy's fiscal policies and their potential impact over the stability of the euro area.

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The euro zone's central bank announced in June that it is set to end its quantitative easing (QE) program at the end of the year, if the data continue to show a pickup in inflation. Back then, the ECB also said that interest rates were unlikely to be increased until at least next summer.

The end of its massive crisis-era stimulus program could be a challenging moment for European bonds, given that the ECB will no longer be in the market purchasing sovereign paper and providing some sort of backstop. This could add further pressure, mainly on Italy, given the widespread concerns over its debt pile.

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