ECB Holds Interest Rate at 1%

The European Central Bank has held interest rates at 1% this month  – but ECB president Mario Draghi did voice concerns over the situation in Hungary.

After 2 rates cuts in  November and December –  another cut today was not  widely expected .

Draghi didn’t give much  indication  of future rate cuts but he warned  that substantial downside risks continue to exist for the eurozone.

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Draghi added the ECB is worried over issues in Hungary, where talks with the IMF have stalled due to concerns about the country’s attempt to limit the independence of its central bank.