The European Central Bank (ECB) on Thursday held the interest rates unchanged as expected, while its president Mario Draghi urged eurozone governments to boost growth and observe austerity fiscal discipline.

Speaking at a news conference held in Barcelona, Draghi said the governing council did not discuss specific rate move, adding that there was "absolutely no contradiction" between pursuing a growth pact and pushing ahead with fiscal consolidation.

"We have to put growth back at the center of the agenda, without any contradiction with the need to continue, persevere in fiscal consolidation," Draghi said.

"It is of utmost importance to ensure fiscal sustainability and sustainable growth in the euro area," said Draghi.

According to Draghi, necessary comprehensive fiscal adjustment is weighing on near-term economic growth, while its successful implementation will contribute to the sustainability of public finances and the lowering of sovereign risk premium.

"It is of utmost importance to ensure fiscal sustainability and sustainable growth in the euro area," said Draghi.

He reiterated that the primary objective of the ECB is to maintain stability over the medium term. "This is the best contribution of monetary policy to fostering growth and job creation in the euro area," he said.

Draghi said the euro area economy would recover gradually this year, supported by foreign demand, the very low short-term interest rates in the euro area as well as other measures.

Decision-makers of ECB were having a meeting in Spain, one of the countries worst hit by the two-year-old eurozne debt crisis, which has seen hikes of government-issued bond yield and record unemployment rate recently.

According to the result released by Markit Economics, an independent business survey provider, the manufacturing Purchasing Managers' Index of the eurozone fell to 45.9, an indication of contraction in the private sector economy in the area.

Draghi said in a statement that there was a stabilization in economic activity at a low level in the first quarter but latest survey indicators for the euro area highlight prevailing uncertainty.

Meanwhile, the markets are keeping a close eye on whether the ECB would restart its bond-buying program to support Spain or hint at cutting interest rates.