ECB holds rates, waits for call to unlock bond plan
The European Central Bank held its main interest rate at 0.75 percent, deferring any cut in borrowing costs while it assesses the extent of the euro zone's economic downturn and waits for a cue to use its new bond-purchase program.
The bank has said it was ready to buy bonds of debt-strained governments such as Spain and Italy once they had signed up to a European bailout program. So far no request has been made, but the announcement alone has calmed markets.
"This is as expected," JP Morgan economist Greg Fuzesi said of the rate decision. "They hadn't signaled any rate move for this meeting."
Investors' attention will now shift to ECB President Mario Draghi's 1330 GMT news conference.
"With the press conference, in terms of monetary policy it's important to see what Draghi makes of the recent growth news, which has been somewhat disappointing," Fuzesi said.
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