ECB Holds Rates As Price Pressures Prevent Cut

on May 03 2012 7:59 AM

(REUTERS) -- The European Central Bank held its main interest rate at 1.0 percent on Thursday as stubborn inflation offset pressure to loosen borrowing costs further to support the weak eurozone economy.

The ECB also said the interest rate on its deposit facility would remain at 0.25 percent, and the rate on the marginal lending facility would stay at 1.75 percent.

ECB President Mario Draghi will explain the Governing Council's decision at a 1230 GMT news conference.

Markets are looking for any hints on how long the ECB is planning to keep its wait-and-see stance on interest rates and how worried the 17-country bloc's central bank is about weak recent economic data.

They also expect Draghi to be asked to give more details on his suggestion that the eurozone craft a growth agreement, or compact.

(Writing by Sakari Suoninen. Editing by Jeremy Gaunt.)

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