The eurozone's recovery is looking fragile

The decision, widely expected by economists, had little impact on the financial markets.

It came amid signs of a slowdown in the tentative economic recovery in the 12-nation eurozone.

Economists believe the ECB is likely to wait until the economic impact of soaring oil prices is clearer before adjusting interest rates.

Inflation fears

While higher energy costs are likely to fuel inflationary pressures, these may be offset by subdued growth in wages, which are being held in check by high unemployment.

The European Commission said in its latest quarterly economic report, published on Wednesday, that "higher oil prices and lacklustre employment growth will continue to hamper consumption growth in the months to come."

The ECB last altered interest rates in June 2003, when it slashed borrowing costs by 0.5% in an effort to kick-start the flagging eurozone economy.

In contrast, the Bank of England has raised interest rates five times since November 2003, while the US Federal Reserve has done so twice in the last four months.

Earlier on Thursday, the Bank of England's monthly monetary policy meeting decided to leave UK interest rates unchanged at 4.75%.