ECB Holds Rate, No Stimulus But Ready to Act if Needed

The president of the European Central Bank (ECB), Mario Draghi, says the bank stands ready to give the eurozone further economic stimulus “should it become necessary”.

The comments boosted shares in Europe.

The bank began an asset purchase programme last month, but has come under pressure to do more to boost weak economic growth in the eurozone.

The ECB’s regular policy meeting left interest rates unchanged at their record low of 0.05%, as expected.

On Tuesday, the European Commission cuts its growth forecast for the eurozone to just 0.8% for this year, down from a previous estimate of 1.2%.

The commission also cut its growth forecast for 2015 to 1.1% from 1.7%.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency 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.
Alfonso Esparza