ECB Forecasts a Slow Economic Recovery

The European Central Bank forecast Thursday a slow economic recovery and repeated its pledge to keep interest rates low as it waits for more evidence that the upturn will be sustained.

The ECB said it expected GDP in the 17-nation eurozone would shrink by 0.4% in 2013, compared with a previous forecast for contraction of 0.6%. The revision is in keeping with data showing a stronger-than-expected return to growth in the second quarter and encouraging signals from surveys of business activity and confidence.

But speaking to reporters after the bank decided to keep interest rates at their record low of 0.5%, Draghi reiterated that they would remain at current levels or lower for an extended period to support the “slow pace” of recovery in output.

CNN

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