The European Central Bank (ECB) has left its key interest rate unchanged this afternoon.

At a meeting today the Governing Council decided to keep it at a record low of 0.75%.

Markets across Europe were broadly unchanged following the rate decision.

The ECB says the decision was down to high energy prices and increases in indirect taxes in some Euro area countries.

It says inflation rates are expected to remain above 2% throughout 2012 but then should fall below that again in the course of next year and to “remain in line with price stability over the policy-relevant horizon”.

It expects inflation for the Euro area to continue to be anchored in line with the aim of the bank of maintaining inflation rates below but close to 2% over the medium term.

While economic growth in the Euro area is expected to remain weak with on-going tensions in some financial markets and high uncertainty still weighing on confidence and sentiment.

President of the ECB Mario Draghi says more still needs to be done by Member States to encourage growth.

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