The European Central Bank (ECB) on Thursday decided to leave key interest rates unchanged after its regular rate-setting meeting.

The three key interest rates are still hovering at historically high levels. The interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility remain unchanged at 4.5 percent, 4.75 percent and 4 percent respectively, the ECB announced in a statement.

The governing council of the ECB considers that the key ECB interest rates are at levels that are making a substantial contribution to the ongoing disinflation process.

"The Governing Council's future decisions will ensure that its policy rates will stay sufficiently restrictive for as long as necessary," said the statement.

Inflation in the euro came down to 2.4 percent in March from 2.6 percent in February, according to the flash estimates from the statistical office of the European Union (EU). The inflation is edging closer towards the target of the ECB, which is mandated to keep inflation below but close to 2 percent in the medium term.

All eyes are on the ECB as to when it will make its first rate cut in a bid to normalise its monetary policy after an aggressive rate-hiking cycle, during which key interest rates were lifted by a total of 450 basis points in just over a year.

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