ECB keeps key rates unchanged, as expected

The European Central Bank on Thursday decided to keep its keys rates, as expected by analysts.

The ECB said it would maintain interest rates, the deposit facility and the marginal lending facility unchanged at 0.05%, -0.20% and 0.30%, respectively.

The market is now turning to President Mario Draghi's press conference at 1330 BST to hear what he has to say about the reasoning behind the ECB's latest decision.

The central bank's €60bn monthly asset purchase programme will be of particular focus amid speculation it could be extended past September 2016 to address low inflation, a stagnant Eurozone recovery and risks stemming from a slowdown in emerging markets.

“The ECB are supposedly pleased with the early results from their stimulus plan, but now is not the time for back-slapping. The eurozone remains in a perilous state, especially with inflation falling back below zero," said Dennis de Jong, managing director at UFX.com.

"Mario Draghi now needs to concentrate on diverting a prolonged period of deflation, and the outlook for growth is far from positive. The slowdown in China and other emerging markets is a big threat to the long-term health of the eurozone. Consumer confidence needs to pick up quickly across Europe but, against a backdrop of poor global growth and an influx of refugees, that is going to be easier said than done.”