Frankfurt--The European Central Bank held its key interest rates steady, as expected, on Wednesday, but investors were listening for what ECB chief Mario Draghi had to say about Greece.
The ECB voted to hold the benchmark "refi" refinancing rate steady at its current all-time low of 0.05 percent, a central bank spokesman said.
The two other key rates -- on the deposit and marginal lending facilities -- were also unchanged at -0.2 percent and +0.3 percent, respectively.
But since no policy changes had been expected anyway, financial markets were instead focused on a scheduled meeting between Greek Prime Minister Alexis Tsipras and EU Commission president Jean-Claude Juncker in the Belgian capital on Wednesday evening.
"The ECB was never likely to announce any policy changes at its meeting today... potentially more interesting though will be anything Draghi will have to say on Greece," said Capital Economics economist Jonathan Loynes.
Greece and its international creditors have exchanged proposals to reach a deal to unlock 7.2 billion euros ($8 billion) to help Athens make a critical repayment on Friday. But months of fractious talks have been deadlocked over creditors' insistence that Athens undertake greater reforms which Greece's anti-austerity government has refused to match.
There are fears that Greece could default, possibly setting off a chain reaction that could end with a messy exit from the eurozone.
Draghi attended a meeting of finance ministers and central bank governors of the Group of Seven wealthiest countries in Dresden last week, where efforts to hammer out a deal and prevent a disastrous Greek exit from the eurozone took centre stage.
He also took part in a late-night meeting in Berlin with German Chancellor Angela Merkel, French President Francois Hollande and EU Commission chief Juncker on Monday.
Loynes said markets would focus on any comments from Draghi on "the proposal supposedly put together" at the Berlin meeting.
AFP
