All Eyes on Draghi: Euro Rises After ECB Holds Rates

The European Central Bank has voted to keep its benchmark interest rate on hold at a record low. Last month the ECB lowered the rate to 0.5% from 0.75% - the first cut in 10 months.

The decision not to cut rates further came despite an ongoing recession across the 17 countries that use the euro.

The ECB also revised down its forecast for eurozone GDP in 2013. The Bank now predicts a contraction of 0.6% over the year, compared to a previous estimate of 0.5%.

Downside risks

However, ECB President Mario Draghi told a press conference the bank had marginally revised up its 2014 forecast to 1.1% growth.

"The governing council continues to see downside risks surrounding the economic outlook for the euro area."

"They include the possibility of weaker than expected domestic and global demand and slow or insufficient implementation of structural reforms in euro area countries."

Draghi ducked questions about precisely how many members of the ECB's Governing Council voted to cut interest rates.

"Export growth should benefit from a recovery in global demand, while domestic demand should be supported by the accommodative stance of our monetary policy and by the recent real income gains due to lower oil prices and generally lower inflation."

Instead he said "the vastly prevailing consensus" was there had not been any events deemed significant enough to merit a cut.

The eurozone's gross domestic product (GDP) shrank 0.2% in the first quarter - the sixth quarter of decline in a row.

The rate announcement came shortly after figures showed unemployment in France rose to 10.8% in the first quarter of the year - its highest level since 1998. The jobless rate grew from 10.5% in the last quarter of 2012, the official Insee statistics agency said. The French economy went into a recession after seeing GDP fall by 0.2% in the first quarter.