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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.