The European Central Bank has left European interest rates untouched at 3.25% for the fifth month in a row.

The decision comes as no surprise, and matches the overwhelming consensus of observers.

The ECB is thought to be awaiting more evidence of a sustained economic recovery before it begins to reverse the four interest rate cuts it made last year.

Earlier on Thursday, the Bank of England decided to leave its key interest rate untouched at 4%, having last lowered it in November.

Worries to come

The bank has a record - in comparison with some central banks as being a hawk, and its brief orders it to focus on keeping inflation in check.

But with Europe's economy still crawling out of the doldrums after last year's downturn, growth in the first half of the year is likely to remain flat, picking up towards the end of the year.

Inflation remains uncomfortably high, at 2.4% well above the 2% ceiling the Bank has set itself.

Worries about the level of inflation are combining with fears about rising wages - German union IGMetall is demanding a 6.5% increment this year - to make economists believe that an interest rate hike can be no more than a few months off.

Oil prices, driven higher by the escalating violence in the Middle East are also likely to figure strongly in the ECB's deliberations from here on.