The European Central Bank can cutits main policy rate even further after decreasing it to a newrecord low on Thursday, ECB Executive Board member Benoit Coeuresaid.
Responding to a drop in euro zone inflation well below itstarget level of just under 2 percent and rising unemployment,the ECB lowered its main rate by a quarter percentage point to0.50 percent.
"We can always cut more. We were clear on this," Coeure toldFrench radio station France Inter on Saturday. "We will cutagain if new indicators confirm a deterioration in thesituation."
ECB President Mario Draghi on Thursday stuck with the ECB'sforecast that economic recovery would take hold lar in theyear but highlighted "downside risks" to that position.
The ECB would "monitor very closely" all incoming evidence,Draghi said, a phrase which in the past has suggested furtherpolicy action to come.