European Central Bank President Mario Draghi signaled he'drather use interest rates than the printing press to bolster growthas the debt crisis drags the euro-area economy towardrecession.

Chairing his first policy meeting after succeeding Jean- ClaudeTrichet on Nov. 1, Draghi unexpectedly cut the benchmark rateyesterday by a quarter point to 1.25 percent and left the door opento a further move. At the same time, he ruled out ramping up ECBbond buying to reduce governments' borrowing costs, saying theprogram is “temporary” and “limited.”

“It's back to basics on the crisis fighting; rates rather thanbond purchases,” said Julian Callow, chief European economist atBarclays Capital in London. “He must be the first ECB President toutter the word 'recession' before it has actually happened.”