AP News

ECB to leave rates alone, faces Cyprus questions


FRANKFURT, Germany (AP) — The European Central Bank is expected to leave its benchmark interest rate unchanged at a record low of 0.75 percent when its rate-setting council meets Thursday in Frankfurt, Germany.

Europe's economy is in a recession, but economists say rates are already low and another rate cut might not provide much added stimulus.

At his news conference afterward bank head Mario Draghi will give his outlook on when a recovery might arrive.

He will also likely be asked his views on the 10 billion euro bailout of Cyprus by the other eurozone countries.

Markets will listen for Draghi's take on the country's capital controls, a step aimed at preventing bank runs. Some economists say the practice violates the idea of a shared currency.


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