The ECB now expects the euro area to contract by 0.6% this year, having earlier predicted a GDP fall of 0.5%.
ECB President Mario Draghi said the Bank still saw “downside risks” for the eurozone economy, but insisted a gradual recovery would begin in 2014.
The ECB’s benchmark rate was kept at 0.5%, after being cut last month.
May’s cut from 0.75% was the first in 10 months.
The decision not to cut rates further came despite an ongoing recession across the 17 countries that use the euro.
via BBC
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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