Bundesbank president Mr Ernst Welteke said yesterday that he saw no need to start talking about further changes in eurozone interest rates just yet.

The European Central Bank (ECB) raised its key interest rates by a half point at the beginning of November. "It would be unwise to move again too quickly so as to avoid creating too much volatility on the financial markets," Mr Welteke told a press briefing.

Expectations that the ECB might tighten monetary policy for the 11-state euro zone early next year were raised on Tuesday after the ECB published data which showed a strong growth in M3 money supply in November.

But Mr Welteke, who as Bundesbank president also sits on the policy-making governing council of the ECB, said that central bankers were "well advised to stabilise (interest) rates and rate expectations. I'm in favour of stable (interest) rate expectations and of supporting these in public statements. That doesn't mean to say that we don't look at developments carefully," he said.

"But we shouldn't start a discussion about interest rates on any figure that might change from day to day. I see no need for discussions in too short a timeframe. I am in favour of holding rate expectations stable," Mr Welteke said.

Mr Welteke was not overly concerned about the recent acceleration in inflation in Germany and the single-currency area.

The pick-up in consumer prices was primarily due to the continuing rise in oil prices. And the recent slide of the euro would also have helped notch imported inflation a little higher, he explained.

Mr Welteke was wary about naming an appropriate level for the euro. "I'm fairly sure we will be somewhere between the level at the start of 1999 and the end of 1999 for the average of the coming year," he said.

When the single currency was introduced in January, it bought around $1.17. It briefly fell below parity with the dollar earlier this month, but it has recovered since and yesterday was changing hands at $1.0069.