Frankfurt, Feb 4 (IANS): The European Central Bank (ECB) has decided to keep interest rates and other monetary policies unchanged in spite of inflation spikes in the euro area.

Inflation in the euro area remained high at 5.1 per cent in January and the ECB insisted that it is to decline in the course of this year, reports Xinhua news agency.

While addressing reporters here, ECB President Christine Lagarde acknowledged that there was "unanimous concern" about elevated inflation at the governing council meeting.

Lagarde stressed that price stability is the mandate of the central bank and she cautioned against rushing into decisions in the event of price hikes, which are mainly attributed to higher energy costs.

The ECB is going to keep a close eye on incoming data and analyse factors that will drive up prices in the short term and affect its medium-term target of two percent.

Economic growth in the euro area slowed to 0.3 percent in the last quarter of 2021.

The current wave of Covid-19 pandemic is weighing on economic activity, which will remain muted in the early part of this year, Lagarde said in a statement.

She added that the economy will pick up "strongly" in the course of the year when the factors restraining production and consumption gradually ease.