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ECB cuts rates to record-low 0.5%; Draghi comments eyed

Published 05/02/2013, 07:48 AM
EUR/USD
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Investing.com - The European Central Bank cut its benchmark interest rate to a record low in May, in a bid to bolster faltering growth in the region, it announced on Thursday.

The ECB said it was cutting the benchmark interest rate to a record-low 0.5%, in line with market expectations and down from 0.75%.  

The central bank also lowered its marginal lending to 1% from 1.5% and left its deposit facility rate unchanged at 0.0%.

ECB president Mario Draghi was to comment on the decision at a press conference later in the day.

Market participants will scrutinize Draghi’s comments for clues in regards to the central bank's next course of action in dealing with an ongoing sovereign debt crisis.

Following the announcement, the euro trimmed losses against the U.S. dollar, with EUR/USD shedding 0.1% to trade at 1.3166.

Meanwhile, European stock markets remained mixed. The EURO STOXX 50 rose 0.1%, France’s CAC 40 shed 0.2%, Germany's DAX advanced 0.2%, while London’s FTSE 100 dipped 0.2%.  

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