This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-25669663

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
European Central Bank keeps rates at record 0.25% low 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%.
ECB said president Mario Draghi said rates would "remain at present or lower levels for an extended period of time".
There had been speculation that the bank might act to bolster fragile growth in the 18-nation euro bloc.There had been speculation that the bank might act to bolster fragile growth in the 18-nation euro bloc.
With eurozone inflation falling below 1%, there is also concern about deflation as consumers delay purchases in the hope of prices falling further.With eurozone inflation falling below 1%, there is also concern about deflation as consumers delay purchases in the hope of prices falling further.
ECB president Mario Draghi will hold a news conference later on Thursday to explain the bank's decision.
In November, the ECB cut the rate to 0.25%, from 0.5%, which Mr Draghi said at the time was done because of continuing economic weakness among some eurozone members.
The eurozone economy grew only 0.1% in the third quarter, while inflation, at only 0.8%, remains below the ECB's goal of about 2%.The eurozone economy grew only 0.1% in the third quarter, while inflation, at only 0.8%, remains below the ECB's goal of about 2%.
Lower rates can help growth, but the ECB has little room left to cut. Some analysts think it may try other steps, such as offering cheap loans to banks, which could be passed on in cheaper company lending. Mr Draghi told a news conference that the eurozone "may experience a prolonged period of low inflation, to be followed by a gradual upward movement towards inflation rates below but close to 2% later on".
He said the economic risks for the eurozone "remain on the downside" and that the ECB is ready to "take further decisive action" using "all available tools" to spur a weak recovery.
In November, the ECB cut the rate to 0.25%, from 0.5%, which Mr Draghi said at the time was done because of continuing economic weakness among some eurozone members.
He told Thursday's news conference that the ECB was keeping a close eye on the low inflation rate, but said it was important to understand that the recent fall was in large part due to a technical adjustment of service sector data in Germany.
"We will act when we have reason to think that our medium-term assessment for inflation is changing... Let me be absolutely clear, we have a mandate to maintain price stability - in both directions," Mr Draghi said.
He gave no indication of what action the ECB might take, but said the bank would consider all measures.
Following his comments that interest rates might stay low for some time, the euro fell to 82.27 pence, its lowest against sterling in a year.