The European Central Bank left interest rates unchanged today, holding them at record lows while it rolls out new stimulus measures it hopes will see off the twin threats of deflation and economic stagnation.

The decision to leave rates at record lows was widely expected after the ECB cut them to rock-bottom levels in September and the bank's president, Mario Draghi, then stated that they had hit "the lower bound".

At today’s meeting, the ECB left its main refinancing rate at 0.05 per cent.

It also kept the rate on bank overnight deposits at -0.20 per cent, which means banks pay to park funds at the central bank, and held its marginal lending facility - or emergency borrowing rate - at 0.30 per cent.

Markets now turn their attention to Mr Draghi’s news conference, which investors will listen to closely for any hints that the ECB could expand its purchase programme to include other assets such as corporate bonds.

Reuters