European Central Bank Governing Council member Mr Guy Quaden today said euro zone interest rates could not remain at their very low level forever but that it was not yet time to change them.
"Interest rates in the euro zone are low, very low . . . the rate cannot remain eternally at that very low level but considering the current prospects for inflation and growth in the euro zone, the time to move, I think, has not yet come," Mr Quaden, the governor of the Belgian central bank, said.
The ECB has kept its benchmark interest rate a record low 2 per cent for 20 months and most private-sector economics do not expect a rate rise before late this year.
Mr Quaden's comments are in line with recent statements by other ECB policymakers, including council member Mr Nicholas Garganas who on Friday said he does not expect the ECB to give any new signals about monetary policy soon.
ECB Governing Council member Mr Axel Weber also told Reuters in an interview released on Friday that the ECB does not need to act quickly to counter inflationary risks, signalling that interest rates can stay low for a while longer.
Mr Weber also noted that economic data were "mixed" though the ECB still expects a gradual and moderate recovery this year.
The ECB staff projections have 2.0 per cent as the mid point for inflation this year, and 1.6 per cent in 2006. For GDP growth, the mid point is 1.9 per cent this year picking up to 2.2 per cent next year.