ECB holds interest rate at 1%

The European Central Bank held interest rates at a record low yesterday, seeing tentative signs of economic stabilisation, but refused to say what part it might play in averting aruinous Greek default.

After days of delay, Greek political leaders clinched a deal on austerity measures needed to secure a bailout to keep the country afloat.

ECB president Mario Draghi said Greek prime minister Lucas Papademos had confirmed to him that the Greek parties had endorsed a deal, as demanded by their European Union and International Monetary Fund lenders, after days of delay.