Draghi notes signs of stabilization in eurozone

AP News
Posted: Jan 12, 2012 8:51 AM
Draghi notes signs of stabilization in eurozone

European Central Bank president Mario Draghi says the bank sees "tentative signs of stabilization" in the troubled eurozone economy.

Draghi made the remark after the bank left its main interest rate unchanged at 1.0 percent. The decision Thursday for no change follows two straight monthly quarter point reductions.

The cuts were aimed at boosting the eurozone economy, which many economists think is heading back to recession as the debt crisis in the 17-nation eurozone hits business and consumer confidence.

Draghi says the bank saw "tentative signs of stabilization of activity at low levels" although the economy faced "substantial downside risks."