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ECB holds interest rates steady

ECB holds interest rates steady

The European Central Bank has held interest rates at a record low of 1%.

Governor Mario Draghi spoke of the “prevailing uncertainty” in the euro area, attributing this to of the ongoing debt crisis and the threat of commodity price increases.

He emphasised that fiscal consolidation must continue, but also insisted that growth should lie at the heart of the agenda.

"Growth is sustainable in the long run if it is based on a variety of pillars - one is fiscal stability. We have to put growth back at the centre of the agenda, without any contradiction with the need to persevere with fiscal consolidation.”

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