ECB held rates steady as outlook darkens

The European Central Bank left interest rates unchanged on Thursday, as economic performance in the eurozone is expected to remain weak and Spain resists asking for a full bailout. The benchmark interest rate held at its historic low of 0.75 per cent, meeting analysts' expectations. In September, the ECB pledged its readiness to purchase unlimited quantity of government bonds, easing the pressure on the bond yields of eurozone's indebted nations such as Spain. However, no country has done it so far, but this scheme may be considered as an effective insurance policy.

"We fully expect Mr. Draghi to continue to emphasize that the decision on calling for help rests solely in the hands of the Spanish government," said Nick Matthews, senior European economist at Nomura International Plc in London.