European Central Bank keeps interest rates unchanged at record lows

The European Central Bank left interest rates unchanged on Thursday, holding them at record lows while it considers whether to print money to buy government debt to shore up the euro zone economy.

The decision to leave the cost of borrowing at record lows was widely expected after the ECB cut rates to rock-bottom levels in September and the bank's President, Mario Draghi, then said they had hit "the lower bound".

At Thursday's policy meeting, the ECB left its main refinancing rate, which determines the cost of credit in the European economy, at 0.05 per cent.

The European apex bank also kept the rate on bank overnight deposits at -0.20 per cent, which means banks pay to park funds at ECB, and held its marginal lending facility - or emergency overnight borrowing rate for banks - at 0.30 per cent.

Markets now turn their attention to Draghi's 7:00 pm news conference, watching for any indications on the shape or timing of quantitative easing - possible government bond buys.

(Reuters)