ECB, Bank of England Hold Steady on Rates

Updated from 7:18 a.m. EST with the ECB rate decision

FRANKFURT -- The European Central Bank left its key interest rate unchanged on Thursday at 1.0% as it plots its next steps in fighting the continent's government debt crisis.

Thursday's decision by the ECB follows two months of rate cuts aimed at spurring lagging growth. A recession could make it harder for heavily indebted governments to reduce their burdens.

Rate cuts can spur the economy by making it cheaper for businesses to borrow.

ECB President Mario Draghi will answer questions at a news conference at 8:30 a.m. EST about his economic outlook and give any clues about whether the bank will cut further. The ECB has never taken its benchmark rate below 1.0% in its 13-year history.

Britain's Bank of England also left rates unchanged. It also maintained the current level of its monetary stimulus.

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