FRANKFURT (Reuters) - The European Central Bank held interest rates at a record low one percent yesterday.

The rate decision came as no surprise as all 79 economists in a Reuters poll had predicted the ECB would leave rates on hold for the 17th month in a row. The median forecast is for no change until the fourth quarter of next year.

Markets were little changed by the decision. "That was widely expected," said RBS economist Silvio Peruzzo. "They could not really have done anything different," he said, pointing to the rising euro and risks to the economy.

The ECB and European governments have shown little sign of talk or action to cap recent gains for the euro, in contrast to policies in Japan, China and the United States which have led to warnings of a "currency war" in competitive devaluations.

The euro is now at an eight-month high against the dollar, and is up almost 18 percent against the dollar since hitting a four-year low in June and has gained 9 percent since the September rate meeting.

Trichet brushed off questions about the euro last week.