ECB leaves rates unchanged as economy slows

[May 03, 2012]  FRANKFURT, Germany (AP) -- The European Central Bank has left its benchmark interest rate unchanged.

The bank's governing council, meeting Thursday in Barcelona, kept the key refinancing rate at a record low 1 percent despite concerns that economy of the 17-country currency union may slow down more than expected.

Markets will focus on ECBS President Mario Draghi's growth outlook at a news conference. Recent indicators for the eurozone have pointed down as it struggles with a crisis over too much debt in some countries.

A rate cut could spur growth but worsen inflation, which is above the bank's goal of under 2 percent.

The Barcelona meeting took place under heavy security precautions because of fears of violent protests.

[Associated Press; By DAVID McHUGH]

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.