ECB cuts EU growth forecast for next two years

on 07/03/2013 17:49:31

The European Central Bank has cut its growth forecasts for this year and next as the Eurozone debt crisis continues.

The ECB said it expected the eurozone economy to contract by 0.5% in 2013 before recovering to grow by 1% next year.

It had previously forecast -0.3% and 1.2% respectively.

Meanwhile, the ECB held its interest rates at the historic low of 0.75%.