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| European Central Bank keeps rates at record 0.25% low | |
| (about 1 hour later) | |
| The European Central Bank (ECB) has kept its benchmark interest rate at a record low of 0.25%. | The European Central Bank (ECB) has kept its benchmark interest rate at a record low of 0.25%. |
| The decision follows its surprise cut from 0.5% in November. | The decision follows its surprise cut from 0.5% in November. |
| ECB president Mario Draghi said the decision to keep the rate at its current level reflected the fact that the eurozone's economy remained "subdued". | |
| The eurozone - the 17 countries that use the euro currency - grew by 0.1% in the July-to-September period. | The eurozone - the 17 countries that use the euro currency - grew by 0.1% in the July-to-September period. |
| This compares with 0.3% growth in the previous quarter. | This compares with 0.3% growth in the previous quarter. |
| In a news conference following the announcement, Mr Draghi confirmed the ECB's forward guidance that the interest rate would remain at the same level or lower for the foreseeable future. | |
| Prices remained "subdued", he said, despite the recent increase in the eurozone inflation rate from 0.7% to 0.9%. | |
| The ECB has reduced its benchmark interest rate consistently since 2008, when it stood at 3.75%, in response to the region's sustained debt crisis and contracting economy. | The ECB has reduced its benchmark interest rate consistently since 2008, when it stood at 3.75%, in response to the region's sustained debt crisis and contracting economy. |
| This refinancing rate determines what banks pay to borrow from the ECB and influences borrowing costs for businesses and consumers. | This refinancing rate determines what banks pay to borrow from the ECB and influences borrowing costs for businesses and consumers. |