FRANKFURT: The European Central Bank (ECB) sat down on Thursday to its first meeting of 2013 where it is widely expected to keep rates at an all-time low, despite record high unemployment in the recession-wracked eurozone.

On the eurozone bond market, tension on Spanish and Italian bonds eased sharply in a further sign that some of the immediate steam is evaporating from the eurozone debt crisis.

Nevertheless, some economists suggested that ECB chief Mario Draghi could keep open the door for further rate cuts to support the 17-nation euro area, in case the economy takes another turn for the worse or the debt crisis strikes the markets again.

“We expect today’s ECB meeting to be relatively uneventful. Both conventional and unconventional monetary policy will most likely remain unchanged, although Draghi will continue to sound dovish and retain a clear easing bias,” said analysts at UniCredit in a daily note to investors.

ING Belgium economist Carsten Brzeski agreed.

“This week, the ECB will ring in the New Year with a rather unexciting meeting. Rates should remain on hold and the ECB should confirm its current ‘wait and see’ mode,” he said.

“We think that there is little chance that the ECB will cut interest rates,” said Marie Diron of Ernst and Young Eurozone Forecast.

“With a growing perception that key sources of downside risks to the eurozone and global economy have now significantly diminished, it seems improbable that the ECB’s governing council will shift in favor of a rate cut,” she added.