The ECB decided to leave its main interest rate at 0.75 percent. Although taking no monetary policy action, the ECB and Ireland have reached a compromise on a long-standing dispute over the cost of servicing money borrowed for a failed bank, a source involved in the discussions told reporters.

Dublin rushed through emergency legislation early today to liquidate failed Anglo Irish Bank as part of a compromise to avoid paying 3.1 billion euros a year until 2023 on money it took for the stricken lender during a meltdown of the main Irish banks in 2008.

ECB chief Draghi is to hold a news conference at 1330 GMT at which he will confirm the deal but face pointed questioning on other issues.