ECB holds interest rate at 0.75% as Draghi warns downside risks remain

The ECB left the main interest rate on hold at 0.75% at its latest monthly meeting, but the bank’s president Mario Draghi warned that economic risks remained on the downside.

However, there are signs markets are returning to more “normal” conditions, he said.

“We are seeing better bond yields and country CDS [credit default swaps]. Stock markets are up, volatility is at historical lows and redemptions are one-fifth of what they were last September. And there are capital inflows into the eurozone,” said Mr Draghi.