ECB holds rates at record-low 0.25%; Draghi comments eyed

The European Central Bank held its benchmark interest rate at a record low in March, in a bid to safeguard the economic recovery in the region, it announced on Thursday.

ECB president Mario Draghi was to comment on the decision at a press conference later in the day.The ECB said it was maintaining its benchmark interest rate at a record-low 0.25%, in line with market expectations. The central bank also held its marginal lending at 0.75% and left its deposit facility rate unchanged at 0.0%.

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 added to gains against the U.S. dollar, with EUR/USD rising 0.23% to trade at 1.3764, compared to 1.3747 ahead of the announcement.

Meanwhile, European stock markets remained higher. The EURO STOXX 50 advanced 0.5%, France’s CAC 40 added 0.6%, Germany's DAX tacked on 0.15%, while London’s FTSE 100 inched up 0.15%.