This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-32991915

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
European Central Bank holds rates at record low of .05% ECB's Mario Draghi says eurozone recovery to broaden
(about 3 hours later)
The European Central Bank left its key interest rate unchanged at 0.05% as latest economic reports suggest improvement in the eurozone. The European Central Bank (ECB) has said the eurozone's recovery is set to "broaden", as it raised its inflation projections for 2015.
The ECB has held rates at this level across the 19 countries that use the euro currency since September 2014. ECB president Mario Draghi's comments came after the bank left its key interest rate unchanged at 0.05%.
Since February, it has turned to its monthly €60bn bond-buying programme, or quantitative easing, to stimulate the economy. Inflation in the eurozone is now expected to be 0.3% this year, against the ECB's previous prediction of zero.
On Wednesday the OECD lifted eurozone growth forecasts from 1.1% to 1.4%. Earlier on Wednesday, figures had indicated signs of improvement in the eurozone's jobs market.
It credited bolder-than-expected monetary easting by the European Central Bank for the increase. 'Loss of momentum'
For next year, the think-tank now expects growth in the euro area to be 2.1%, up from 1.7%. The European Central Bank expects inflation to stay low in the coming months, as a result of lower oil prices, but rise by the end of the year.
Figures released on Tuesday showed the annual inflation rate in May rose to 0.3%, after five months of falls or stagnation.
Earlier this year, the ECB began a €60bn-a-month asset-buying programme in an attempt to stimulate the economy and avoid deflation.
Mr Draghi said the programme was proceeding well, and reiterated that it was intended to run until the end of September 2016.
"Our monetary policy measures have contributed to a broad-based easing in financial conditions, a recovery in inflation expectations and more favourable borrowing conditions for firms and households."
However, while Mr Draghi said the recovery was "on track", he said the ECB had "expected stronger figures".
"There has been a loss or some loss of momentum... mostly due to weakening of the economies outside the euro area, emerging markets mostly."
Unemployment falls
Earlier on Wednesday, the OECD lifted its 2015 growth forecast for the eurozone to 1.4% from 1.1%, and the 2016 forecast to 2.1% from 1.7%.
It credited the monetary easing programme by the European Central Bank as one factor behind the increase.
Other data released on Wednesday showed eurozone unemployment improving.Other data released on Wednesday showed eurozone unemployment improving.
Official figures showed the jobless rate fell to 11.1% in April, down from 11.2% the month before.Official figures showed the jobless rate fell to 11.1% in April, down from 11.2% the month before.
Separately, an influential survey from Markit indicated eurozone companies created jobs at the fastest pace in four years last month. Separately, a survey from research firm Markit indicated eurozone companies created jobs at the fastest pace in four years last month.
May was the seventh month in a row that firms in the eurozone had increased employment, Markit found.
Job creation accelerated last month in Germany, France and Spain, Markit said, with job growth in Spain hitting its fastest rate for more than seven years.Job creation accelerated last month in Germany, France and Spain, Markit said, with job growth in Spain hitting its fastest rate for more than seven years.
However, the survey also indicated that economic growth in the eurozone's private sector lost steam last month. However, the survey also suggested that economic growth in the eurozone's private sector lost steam last month.
Markit's composite purchasing managers' index (PMI) dipped to 53.6 in May from 53.9 in April. A figure above 50 indicates growth.Markit's composite purchasing managers' index (PMI) dipped to 53.6 in May from 53.9 in April. A figure above 50 indicates growth.
"The eurozone recovery lost some of the wind from its sails in May, with growth of output and new orders both slowing to three-month lows," said Chris Williamson, Markit's chief economist."The eurozone recovery lost some of the wind from its sails in May, with growth of output and new orders both slowing to three-month lows," said Chris Williamson, Markit's chief economist.
He added that the weak euro was boosting manufacturing, but the still-high unemployment in the region continued to limit spending on goods and services.
In addition to the monthly unemployment statistics, the European Union's statistics agency Eurostat also reported that retail sales rose 0.7% in April.
That brought the year-on-year increase to 2.2%, which was higher than analysts had forecast.