The bank’s governing council made the decision Thursday to keep benchmark interest rates, the size of its bond-buying stimulus programs and its outlook unchanged.
The ECB still made clear it was ready to do more at any point, reaffirming its long-standing guidance to prop up the economy.
Lagarde addressed EU leaders, meeting by videoconference to wrangle over how to engineer a recovery from the deep recession caused by three months of coronavirus lockdowns in most European countries.
In what ECB President Christine Lagarde described as a baseline scenario, the ECB sees the bloc's economy shrinking by 8.7 percent this year after much of Europe was shut down for over two months this spring to halt the coronavirus outbreak.
The central bank for the 19 countries that use the euro also extended its monetary stimulus program to at least the end of June next year, from the end of 2020 currently.
The slowdown, also marked by rapidly deteriorating labour markets, is likely to steepen before the recovery phase kicks in, she told the bank's post-policy meeting news conference.
ECB President Christine Lagarde told a news conference the virus would have a "significant impact on economic activity" even if it is ultimately temporary in nature and called for "an ambitious and coordinated fiscal policy response".
The sources acknowledged the ECB was under increasing pressure to lower its policy rate further after a surprise Federal Reserve cut on March 3.
"To think it's autopilot, that's ridiculous," Lagarde said on Bloomberg TV. "There's a forward guidance which is strong, which is setting a very clear timetable but it's fact dependent. Let's look at the facts, let's look at how the economy evolves."
Lagarde said that aim will now be reviewed, along with the ECB's toolkit, how it measures price growth and how it communicates with the public.
The former International Monetary Fund chief, who took over Europe's most powerful financial institution on Nov. 1, has promised a rigorous assessment of how the ECB does business, weighing fundamental issues like changing the inflation target and how to fight climate change.
The 72-year-old Italian banker is widely credited with saving the euro zone from collapse, but some critics say he also overpowered opponents and tended to front-run the bank's monetary policy in public.
Lagarde said in a statement her resignation was effective September 12, opening the way for the IMF to choose its next leader.
In a speech ahead of next week's spring meetings in Washington with the World Bank, IMF chief Christine Lagarde said the world economy was vulnerable to shocks from Brexit, high debt levels and trade tensions, as well as unease on financial markets.
Khan is paying a day-long trip to the UAE to take part in the 7th edition of the World Government Summit on the invitation of Vice President and Prime Minister of the UAE Sheikh Mohammad Bin Rashid Al-Maktoum.
Revising the global growth forecast, Lagarde said the bottom line is that after two years of strong expansion, the world economy is growing more slowly than expected and risks are rising.
The managing director of the Washington-based global crisis lender issued yet another plea to governments, notably the United States, to back away from protectionism and confrontation.
Given the less-than-laudatory attention that India’s rapidly declining female labour force participation is receiving globally, one needs to add another line to the famous girl child campaign: ‘Beti Bachao, Beti Padhao aur Beti Ko Kaabil Banao’
In a report for the Group of 20 leaders meeting in Buenos Aires, the IMF said auto tariffs, if imposed, could cut three fourths of a percent off the global economy.
Finance ministers and central bankers from many of the IMF's 189 member nations are meeting in Bali this week where concerns about protectionism have taken centre stage - especially the escalating trade war between the United States and China.
Lagarde made the remarks in a major policy speech at the International Monetary Fund headquarters here ahead of the annual fall meeting of the IMF and the World Bank in Bali later this month.
The Fund predicted Britain's economy would grow by about 1.5 percent a year in 2018 and 2019 lagging behind Germany and France if a broad Brexit agreement was struck.
French President Emmanuel Macron and Japanese Prime Minister Shinzo Abe are also expected to attend the investment forum, which will be chaired by Russian President Vladimir Putin.
The Managing Director of the International Monetary Fund said she does not expect the pace of economic reforms to continue in an election year.
"What has happened (in India) is just revolting. I would hope that the Indian authorities, starting with Prime Minister Modi pay more attention because it is needed for the women of India," Lagarde said.