YEREVAN, December 6. / ARKA /. The European Central Bank (ECB) on Thursday left its key interest rate unchanged at a record-low 0.75% for a fifth straight month, ECB president Mario Draghi said adding that the ECB continues to analyze the ongoing market impact of its bond-buying scheme announced in September, according to Banki.ru. It said the ECB, however, is later expected to cut its economic growth forecasts and may provide direction of monetary policy for next year.
On 5 July 2012, the ECB cut interest rates to a record low of 0.75%, following six straight months at 1.0%. In December, the ECB cut interest rates to 1% from 1.25%, following a fall of 25 basis points announced in November.
After October 2008, when the level was at 4.25%, the bank cut its key rate several times as it tried to haul the eurozone economy out of deep recession.
Mario Draghi told reporters on Thursday the central bank had revised downward its projection for growth in the eurozone, now forecasting a 0.5-percent contraction this year, followed by a maximum of 0.3-percent growth in 2013.
“Economic weakness in the eurozone is expected to extend into next year, but a gradual recovery should start later in 2013,” Draghi said.
The ECB aims to keep the inflation rate in the eurozone close to but below 2 percent. The rate has remained stubbornly above that for months and only recently began falling — it was 2.2 percent in November. Draghi said inflation should continue to ease
“Inflation rates have been elevated for some time. More recently they have declined, as anticipated, and are expected to fall below 2 percent in 2013.” -0-
