European Central Bank President Mario Draghi said policy makers discussed cutting interest rates to a record low today, fueling expectations they will act as soon as next month as the worsening debt 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 benchmark rate at 1 percent. Downside risks to the economic outlook have increased and “a few” of the ECB's Governing Council members called for rate cut at today's meeting, he said.

The ECB is under pressure to lower rates and introduce more liquidity support for banks as governments struggle to fix a crisis that's engulfing Spain and could force Greece out of the euro. While the ECB extended into next year its policy of lending banks as 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 to the crisis.