Investing.com – The European Central Bank on Thursday kept its benchmark interest rate steady at a record low of 1%, in a bid to create some security amid fears that Greece's debt crisis will spread across the euro zone.
The move came after the euro slumped against other major currencies, falling to a 14-month low against the dollar, and the cost of insuring Portuguese and Spanish debt as well as Greek debt against default leapt to new peaks.
Also Thursday, the ECB was due to hold a press conference, during which the bank's president, Jean-Claude Trichet, was likely to face questions about the growing debt crisis.
The move came after the euro slumped against other major currencies, falling to a 14-month low against the dollar, and the cost of insuring Portuguese and Spanish debt as well as Greek debt against default leapt to new peaks.
Also Thursday, the ECB was due to hold a press conference, during which the bank's president, Jean-Claude Trichet, was likely to face questions about the growing debt crisis.