Eurozone rates unchanged despite deflation fear

By David McHugh

Published February 6, 2014 3:58pm ET

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Eurozone rates unchanged despite deflation fear — President of European Central Bank Mario Draghi waits for the beginning of a press conference following the meeting of the governing council in Frankfurt, Germany, Thursday, Feb. 6, 2014. The European Central Bank has left its benchmark interest rate unchanged, holding off on more stimulus despite weak economic growth and low inflation. The bank's 24-member governing council left the rate at 0.25 percent at a meeting in Frankfurt, Germany. Some analysts had thought the eurozone's monetary authority might cut the rate to 0.1 percent to try to boost growth more. (AP Photo/Michael Probst) | Michael Probst

FRANKFURT, Germany (AP) — The European Central Bank is sizing up the problems facing the 18-country eurozone before it decides whether to cut interest rates to support the anemic recovery, its president said Thursday.

Weak growth and an unexpected drop in inflation have raised concerns that the eurozone might slide into deflation, a sustained drop in prices that can cripple the economy. The eurozone is among the world’s biggest economic blocs, and a slide into deflation would crimp global growth.

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