European Central Bank leaves key rate at 0.5 per cent; markets wait for hints on more stimulus

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President of European Central Bank Mario Draghi is on his way to a news conference in Frankfurt, Germany, Thursday, July 4, 2013, following a meeting of the ECB governing council. The ECB decided to leave the key interest rate unchanged. (AP Photo/Michael Probst)

FRANKFURT – The European Central Bank has left its key interest rate unchanged at a record low 0.5 per cent even though Europe’s still in a recession.

The bank held off Thursday adding further stimulus for the 17 European Union countries that use the euro as it waits for a hoped-for recovery toward the end of the year.

ECB President Mario Draghi has said the bank is ready to act if needed. He stresses the ECB remains far from signalling any withdrawal of existing measures — unlike the U.S. Federal Reserve, which could phase out some stimulus next year.

Draghi’s news conference later Thursday will be scrutinized for clues on whether the bank is any closer to cutting rates or to deploying other measures it says it is studying.

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