The European central bank has left its key interest rate unchanged at a record low 0.5%, hold more stimulus waiting for recovery of the 17 European Union countries using the euro.
Draghi's news conference later Thursday will scrutinise bank near to cut interest rates or other measures deployed clues, it says it is working.
Most economists had expected, the bank to keep interest rates unchanged. Lower interest rates can reduce the cost of credit business, promote economic growth needs, they borrow to expand their business. Mario draghi has said that the bank is ready to take action, if needed, suggests that it may cut rates further, if the recovery does not arrive in time.
Mr Draghi has been stressed that the European central bank is still far from any existing measures out of signal - the difference is that the U.S. federal reserve has said it can be phased out its bond purchases, if America's economy continues to grow next year.
The fed's plans - known as "quantitative easing" - low interest rates have to send money for a few months into the stocks and bonds. So when Ben bernanke, the federal reserve chairman, hinted that the potential reversal, prices in many markets. Especially indebted euro zone countries, Spain and Italy once face higher borrowing costs rise, the bond prices fell.
Is the interest rate decision meeting on Thursday 23 members of the bank's rate-setting council at its headquarters in Frankfurt, Germany. The European central bank (ECB) is the currency of the eurozone and the issuer's main monetary authorities about the euro zone - the world's second largest economy after the United States - and 3.31 million people.
A bank is a key player in the fight against Europe's 3 and a half years of struggle, too much government debt and the lagging of economic growth. The euro zone economy remains Mired in recession, in the first quarter shrank 0.2%, for the sixth consecutive trading day down continuously. The unemployment rate is 12.2%.
Four countries - Greece, Portugal, Ireland and Cyprus - need a bailout loans, to keep the debt service. Italy and Spain also have trouble, high debt levels. By cutting government spending to reduce debts, efforts to promote members' economic recession and high unemployment.
So far, the European central bank has been trying to cut to stimulate the economy in the euro area's refinancing rate to a record low, private-sector bank fees and give unlimited cheap loans from the bank for three years. It also bring up intervention in the bond markets, buying the cash-strapped country debt, promised to reform its finances. Simple quotation, so far, has been conducted to support bond prices, lower interest rate. It has already taken close Spanish and Italian government financial pressure, ease the crisis during the last year the European atmosphere.
But low interest rates and cheap loans don't have to pull the eurozone out of the recession. The European central bank lending to the Banks' interest rates are still has not been evenly delivered to the enterprise, because some Banks have a financial strain.
Here, the European central bank may do in the coming months:
- another cut benchmark interest rates to 0.25%, for the enterprise and consumer borrowing costs low. It also can reduce costs, the European central bank loans to the bank, and help their financial situation a little bit.
- to guarantee, will keep interest rates low, growth until the economy or unemployment to numerical goals. Build trust, this is referred to as "positive guiding", has been used to the fed. So far, the European central bank will simply say, as long as necessary rate is very low.
- the other to provide cheap, long-term bank loans. This will ensure that they have enough money to lend when the economy begins to rebound, enterprise began to demand it. Some people think that a new round of loans, could last for five years.
- work with other eu institutions to encourage Banks to bind more small business loans, such as bonds sold to them. This may encourage lending. The European central bank cannot do this alone, but, it could take months to set up the time.
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