The European Central Bank kept its main interest rate unchanged at 2.00 percent on Wednesday as expected as the economy sours and inflation remains modest. The ECB has held rates steady since June 2003 as the 12-nation currency region has failed to show sustained recovery and consumer price inflation has stayed muted, although it is slightly above the ECB's target of just under 2 percent. Financial markets were little moved after the news, which was unanimously expected in a Reuters poll. Dealers were awaiting ECB President Jean-Claude Trichet's news conference to explain the central bank's decision. The worsening economic outlook has led markets to rule out a rate hike for this year, with some even betting on a cut. But high and volatile oil prices threaten not just growth but also price stability, making it difficult for the central bank to consider a reduction of interest rates.