The European Central Bank (ECB) is to start withdrawing some of its special measures to support the economy including some of its cheap short-term loans designed to boost the amount of money available in the markets and encourage bank lending.

Jean-Claude Trichet, the ECB president, said the 12-month loan offering in December would be the last one and the six-month offering will end in March. He said: “The improved conditions in financial markets have indicated that not all our liquidity measures are needed to the same extent as in the past.”

The comments came as the bank left interest rates on hold at 1% - the lowest level in its 10-year history. Trichet said that the current interest rate was “appropriate”.

The forecast for growth in the Euro-zone in 2010 was also raised to between +0.1-1.5%, up from a previous prediction of between -0.5% and +0.9%. However, Trichet warned that the recovery process would be “uneven and subject to risks”.