ECB keeps easy money pledge despite better growth

The European Central Bank left its ultra easy monetary policy stance unchanged as expected on July 20, keeping rates at record lows and even leaving the door open to more asset buys if the outlook worsens.

After ECB chief Mario Draghi raised the prospect of policy tightening last month, he signalled that any policy tweaks would come only gradually, setting the scene for a possible discussion in September about a long-awaited tapering of its asset buys.

"We need to be persistent and patient because we aren't there yet, and prudent," Draghi told his regular news conference after a meeting of ECB policy-makers in Frankfurt.

He stressed that the bank's governing council were unanimous both on the decision to keep its guidance unchanged and to avoid setting a precise date for a discussion of future policy, noting only that it would occur in the autumn.

With the eurozone economy now growing for the 17th straight quarter, its best run since before the 2007-08 global financial crisis, that at least suggested the ECB is starting to contemplate easing off the accelerator, preserving some firepower after printing nearly 2 trillion euros to jump start growth.

The prospect of reduced monetary stimulus has kept financial markets edgy, with investors sifting through clues to gauge how big central banks around the globe will unwind unconventional policy that have kept borrowing costs at rock bottom.

The euro and government bond yields across the bloc initially slipped after the statement. But as Draghi spoke, the euro edged back above $1.15 and euro zone bond yields gained, ostensibly on his confirmation of expectations that the taper would be discussed in autumn.

The ECB earlier kept its deposit rate deep in negative...