ECB keeps key rates unchanged, as expected

The ECB left interest rates at 0.05%, the deposit facility rate at -0.30% and the marginal lending facility at 0.30%.

The attention now turns to President Mario Draghi's press conference at 1330 GMT for the reasoning behind the latest policy decision, which comes amid low inflation, risks stemming from weakness in emerging markets, geopolitical tensions and slowing demand for Eurozone exports.

A continued slump in oil prices has weighed on inflation in the Eurozone. A final estimate from Eurostat on Tuesday showed the Eurozone consumer price index rose 0.2% in December, in line with estimates but well under the ECB's target of just below 2%. November was also revised down to 0.1% from a previous estimate of 0.2%

Last month the central bank extended the asset purchase programme past September 2016 and cut the deposit rate 10 basis points to address prolonged weak inflation.

Draghi is likely to face questions in the press conference over whether last month's action had any positive impact.

"While it comes as no real surprise that the ECB has kept policy on hold for now, Mr Draghi is likely to leave the door wide open to further policy loosening quite soon at the press conference," said Jennifer McKeown, senior European economist at Capital Economics.

"The President is likely to voice serious concerns over recent financial market turmoil, having warned previously of external risks to the Eurozone even when fears over China were easing."