European Central Bank President Wim Duisenberg said last night it was too early to weigh the impact of war in Iraq on the world economy.
Mr Duisenberg also repeated that the bank would ensure market liquidity.
"The impact of this military confrontation on the global economy can vary significantly in scope and in size depending on the extent and scope of the conflict," he told a news conference during a summit of EU leaders.
"It is therefore not possible at this juncture to conclusively assess the short- and medium-term implications for the euro area".
He repeated the assurance that the ECB "stands ready to act if necessary", adding that markets could trust it to provide liquidity "even under exceptional circumstances, as has been demonstrated in the past . . . in the days after September 11th, 2001".
This, he said, was an example of trans-Atlantic co-operation among central banks - which he expected would continue to operate.