European Central Bank President Mario Draghi said policy makersdiscussed cutting interest rates to a record low today, fuelingexpectations they will act as soon as next month as the worseningdebt crisis curbs economic growth.

“We monitor all developments closely and we stand ready to act,”Draghi told reporters in Frankfurt after the ECB left its benchmarkrate at 1 percent. Downside risks to the economic outlook haveincreased and “a few” of the ECB's Governing Council members calledfor rate cut at today's meeting, he said.

The ECB is under pressure to lower rates and introduce moreliquidity support for banks as governments struggle to fix a crisisthat's engulfing Spain and could force Greece out of the euro.While the ECB extended into next year its policy of lending banksas much money as they want for periods of up to three months,Draghi indicated another round of three-year loans is not imminent,keeping the pressure on governments to step up their response tothe crisis.