The European Central Bank (ECB) announced Thursday that it has kept its key lending rate unchanged at 4.25 percent.

The Frankfurt-based ECB made the decision as inflation concerns outweighed fears that the eurozone could plunge into recession.

The ECB, known as the guardian of the euro, also left its other two key rates -- the deposit rate and the marginal lending rate -- steady at 3.25 percent and 5.25 percent respectively.

The 15-nation eurozone is facing a threat of stiff inflation and weakening economic activity.

The inflation in the eurozone has been driven sharply higher by soaring energy costs this year though it declined slightly to 3.8 percent in August, from July's record 4 percent.

According to the ECB, it aims to keep inflation "below but close" to 2 percent.