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Thursday, Jan 10, 2013 1:00 PM UTC

ECB leaves rates at record low as Europe struggles

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Topics: From the Wires,

FRANKFURT, Germany (AP) — The European Central Bank has left its benchmark interest rate unchanged at a record low of 0.75 percent even though the economy in the euro area is in recession.

Analysts claim that any further rate cut might not necessarily help out the 17 European Union countries that use the euro. The current low ECB rates are intended to push down what banks charge businesses and consumers for borrowing. The problem now is banks and governments hurt during the financial crisis are not passing on those lower rates to customers plus cautious businesses are reluctant to borrow.

The ECB is addressing that through its offer to buy bonds in indebted countries. The offer alone has lowered borrowing costs.

ECB President Mario Draghi is to speak at a news conference later Thursday.

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Gripping photos: The people of the Turkey protests (slideshow)

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  • The protests take on a festive element as police forces move out of the park and square. Wearing a gas mask, this young man dances to traditional Turkish music in front of Taksim Square’s Ataturk Monument.

  • In Gezi Park since March 31st, this protester, originally caught off-guard by the Government’s teargas and water cannons, went out and bought a Russian army mask from WWII, preparing for what was to come.

  • This rambunctious boy seems to be enjoying the chaos. After taking this picture he threw a stone at the already destroyed building in the background.

  • Forming a line, the police face off directly with protesters in Taksim Square. After a while, they retreated and there was a general cheer – a back-and-forth dance that has been common since the beginning of this protest.

  • An elderly woman in Gezi Park reads the news. The tent community occupying the park was violently destroyed on June 16th.

  • Many different groups had set up booths to promote their cause in Taksim Square and Gezi Park. Standing in front of one, this man waves his flag while posing with conviction.

  • Many home-remedies are used to minimize the effects of tear gas. This woman has put a milky solution on her face, removing her mask after the tear gas dissipated. Before sunrise, the police came again for another round of teargasing.

  • People capitalize on the uprising -- selling flags, beer, gas masks, sky lanterns and spray paint to name just a few of the popular items.

  • On Monday morning, June 11, the police execute a strong offensive. Many plain-clothed police officers, like the ones seen here, clash with protesters in the side streets away from the main stand-off in Taksim.

  • The authorities seem to be most aggressive in the night, pushing protesters away from the square and park. After being teargassed this young woman catches her breath with other protesters on Siraselviler Street.

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