The European Central Bank (ECB) announced on Thursday that its key interest rates would remain unchanged at record low levels.

Interest rates on the main refinancing operations, marginal lending facility and the deposit facility would remain unchanged at 0.05 percent, 0.3 percent and minus 0.3 percent respectively, said the Frankfurt-based ECB in a statement, following the first meeting of ECB's Governing Council in 2016.

By keeping the rates at record lows, the central bank was trying to lift inflation rate in the euro zone to a healthy level and stimulate the sluggish economy in the common currency area.

Annual inflation rate in the euro zone stood at 0.2 percent in December 2015, far below a level of just under 2 percent which the ECB considered as being conducive for the economy.

The decision on Thursday was in line with market expectations. Last month, the ECB decided to cut interest rates on deposit facility, the overnight charge which commercial banks have to pay for depositing their extra cash at the central bank, further deep into a negative territory to minus 0.3 percent.

It also decided to extend its asset purchasing program by six months, continuing to inject 60 billion euros (about 65.4 billion U.S. dollars) into the market every month until March 2017.