FILE - In this May 31, 2012 file picture President of the European Central Bank Mario Draghi reports to the Economic Committee, in capacity as the head of the European Systemic Risk Board, at the European Parliament in Brussels. The European central Bank's 23-member governing council meets Wednesday June 6, 2012. No cut is expected in its benchmark interest rate, which has already been lowered to a record low 1 percent. Draghi wants politicians such as Germany?s Chancellor Angela Merkel, French President Francois Hollande and European Commmission President Jose Manuel Barroso to come together on far-reaching and potentially controversial action to fix what?s really wrong with the euro at a summit June 28-29 in Brussels. Then, analysts say, more help might be forthcoming. (AP Photo/Yves Logghe)
FILE - In this May 31, 2012 file picture President of the European Central Bank Mario Draghi reports to the Economic Committee, in capacity as the head of the European Systemic Risk Board, at the European Parliament in Brussels. The European central Bank's 23-member governing council meets Wednesday June 6, 2012. No cut is expected in its benchmark interest rate, which has already been lowered to a record low 1 percent. Draghi wants politicians such as Germany?s Chancellor Angela Merkel, French President Francois Hollande and European Commmission President Jose Manuel Barroso to come together on far-reaching and potentially controversial action to fix what?s really wrong with the euro at a summit June 28-29 in Brussels. Then, analysts say, more help might be forthcoming. (AP Photo/Yves Logghe)
President of the European Central Bank Mario Draghi reports to the Economic Committee, in capacity as the head of the European Systemic Risk Board, at the European Parliament in Brussels, Thursday, May 31, 2012. (AP Photo/Yves Logghe)
President of the European Central Bank Mario Draghi drinks as he reports to the Economic Committee, in capacity as the head of the European Systemic Risk Board, at the European Parliament in Brussels, Thursday, May 31, 2012. (AP Photo/Yves Logghe)
FRANKFURT (AP) ? European Central Bank head Mario Draghi says the bank is staying with its forecast for a gradual economic recovery this year in the 17 countries that use the euro.
He says, however, that Europe's debt crisis means increased "downside risk" to growth.
Draghi made the remarks after the bank left its key refinancing interest rate unchanged at 1 percent. He said economic activity "remains weak, with heightened uncertainty weighing on confidence."
Some economic indicators have suggested that the eurozone's mild contraction will worsen this year. But the ECB left its growth projection unchanged at between 0.5 and 0.3 percent growth this year.
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