ECB holds interest rates as recovery seen catching on
FRANKFURT, July 4 (Reuters) - The European Central Bank left its main interest rate unchanged at a record low 0.50 percent on Thursday, as recent economic data has kindled hopes of recovery beginning later this year.
European manufacturing activity showed signs of stabilisation last month and is likely to grow this quarter after encouraging signs emerged even in smaller members of the euro zone, a business survey suggested on Monday.
Euro zone inflation rose to 1.6 percent in June, closer to the ECB's goal of just below 2 percent.
The ECB also left the rate on its deposit facility at 0.0 percent and held its marginal lending facility - or emergency borrowing rate - at 1.00 percent.
The markets now turn their attention to the Draghi news conference, scheduled to begin at 1230 GMT, where he will be asked about the bank's future plans, including whether it is moving toward giving more formal forward guidance on policy.