European Central Bank head warns of ‘weak’ outlook for economy
ASSOCIATED PRESS November 8, 2012 8:26AM
FILE - In this July 31, 2012 file photo the euro sculpture stands in front of the headquarters of the European Central Bank, ECB, in Frankfurt, Germany. The ECB announced Thursday, Nov. 8, 2012, that it has left its key interest rate unchanged at 0.75 percent despite sagging growth in the 17 countries that use the euro. The bank has already said that it has done enough and it's up to governments to restore growth by cutting regulation and fixing their finances. (AP Photo/Michael Probst, File)
Updated: November 8, 2012 8:37AM
FRANKFURT, Germany — European Central Bank head Mario Draghi says that financial market confidence “has visibly improved” as the 17-country group that uses the euro struggles with its debt crisis.
But he said the outlook for the economy remains “weak.”
Draghi spoke after the bank’s governing council left its key interest rate unchanged at 0.75 percent.
Stocks and bonds have risen since the bank said it was willing to buy bonds issued by heavily indebted countries, lowering their borrowing costs and easing fears of a eurozone collapse.
But the outlook is dim for growth that would help governments shrink their debt levels.