With the inflation rate being below 1% and prices continually falling, the euro zone is threatened with deflation that could take over at any moment. Despite pressure from consumers, economists, and other businesses to raise the interest rate, Mario Draghi, president of Europe's Central Bank, continues for the third straight month to keep the interest rate at a very low 0.25%. Although inflation is very low and deflation could be upon the euro zone soon if monetary action is not taken, Draghi responds to his critics by saying, "We have to dispense with the question, Is there deflation? The answer is no." This stands to reason that unless there is some drastic change in the economy such as deflation setting in, Draghi will keep the interest rate where it is for at least another month.
http://www.nytimes.com/2014/02/07/business/international/european-central-bank-holds-interest-rate-at-0-25.html
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