The European Central Bank (ECB) has left its key interest rate unchanged at 0.25%. The decision was made by its Governing Council earlier today.

It will be welcomed by those on tracker mortgages and keeps rates at their lowest ever point.

ECB President Mario Draghi said underlying price pressures are expected to remain subdued over the medium-term, and that inflation expectations "continue to be firmly anchored in line with our aim of maintaining inflation rates below, but close to, 2%".

The ECB says all monitors suggest we may experience a prolonged period of low inflation, to be followed by a gradual upward movement towards inflation rates below, but close to, 2% later on.

Mr. Draghi says thier monetary policy stance will "remain accommodative for as long as necessary", so as to assist the gradual economic recovery.

He added that overall improvements in financial markets seen since last year "appear to be working their way through to the real economy, as should the progress made in fiscal consolidation".

The ECB believes that incomes have benefited recently from lower energy price inflation.

But it also cautions that unemployment in the Euro area remains high, and that the necessary adjustments in the public and the private sector "will continue to weigh on economic activity".