European Central Bank chief Mario Draghi faces a major test of his leadership Thursday, with the ECB holding its regular monthly meeting against a backdrop of market expectations that it will unveil a new action plan to head off the long-running euro debt crisis, dpa reported. Analysts are not expecting the bank's 23-head governing council to announce another a rate cut, following last month's decision to reduce borrowings rates by 25 basis points to an historic low of 0.75 per cent. But Draghi's comments seven days ago in London that the ECB would safeguard the euro has sparked market speculation that the bank will try to stem the surge in borrowing costs in nations at the centre of the crisis - notably Spain and Italy - by reactivating its controversial government bond-buying program. This could include Draghi announcing at his press conference following the governing council meeting that the ECB plans to coordinate the bond purchases with the euro bailout fund. Since Draghi's remarks, key European political leaders have backed up his comments with a round of coordinated statements. This includes German Chancellor Angela Merkel. Italian Prime Minister Mario Monte and French President Francois Hollande. Thursday's ECB's meeting follows a meeting of the US Federal Reserve Wednesday with the Washington-based central bank leaving rates on hold but signalling it is ready to act to help spur growth in the world's biggest economy. Analysts also expect the Bank of England will announce Thursday that it held its key rate at 0.5 per cent and maintained its asset-purchase target at 375 billion pounds (586 billion dollars).
