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.
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