Cyprus

ECB’s Draghi sees some signs of euro zone stabilisation

by fm

9th February 2012

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1 min read

Tentative signs of stabilisation in the euro zone economy remained over the past month but uncertainty remains high, European Central Bank President Mario Draghi said on Thursday after the ECB held interest rates at a record low of 1.0 percent.

"Available survey indicators confirm some tentative signs of stabilisation of economic activity at low level around the turn of the year," Draghi told a news conference after the rate decision, which was in line with expectations.

Draghi said there were still substantial downside risks to the economy from the sovereign debt crisis engulfing much of the euro zone periphery.

Since the beginning of the year, some business surveys have instilled hope that the worst of the sovereign debt crisis has blown over and the euro zone economy is perking up.

But a Reuters poll of economists conducted before Thursday's policy decision showed 41 of 71 respondents expected the ECB would cut rates again by its March meeting.