The European Central Bank is expected to keep interest rates unchanged and focus on assessing the euro's introduction when it meets on Thursday for the first time since taking full control of monetary policy in the euro-zone.

While the meeting's agenda is confidential, economists and ECB watchers expect the meeting to concentrate on the arrival of the single currency.

But economists say a looming euro-zone economic slowdown raises the odds of a rate cut within the next few months.

"We expect that the economic conditions will worsen further, that is what business climate indicators show. The ECB should then in such a situation continue its course and cut rates by a further 25 basis points," said Mr Michael Schubert of Commerzbank.

Most analysts expect the ECB to lower its key refinancing rate by the end of the first quarter or some time in the second quarter and now to concentrate on ensuring that euro gets a smooth start on financial markets.