European Central Bank cuts growth forecast

The European Central Bank (ECB) has revised down its eurozone growth forecast as it voted to hold rates at historic lows.

The ECB now expects the euro area to contract by 0.6% this year, having earlier predicted a GDP fall of 0.5%.

ECB President Mario Draghi said the Bank still saw "downside risks" for the eurozone economy, but insisted a gradual recovery would begin in 2014.

The ECB's benchmark rate was kept at 0.5%, after being cut last month.

May's cut from 0.75% was the first in 10 months.

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