Eurozone inflation is still high enough for the European Central Bank (ECB) to stick to its cautious monetary policy, ECB board member Mr Eugenio Domingo Solans said.
"In November, according to Eurostat's estimate, it [inflation] will be around 2.1 per cent and therefore it is logical for us to be prudent," he said in a television interview.
The ECB left its key interest rates unchanged yesterday with the benchmark rate at 3.25 per cent.
"For the moment the rate is fine where it is and on January 3rd we will meet again and we will look again," he said.
Mr Solans said he was confident euro zone inflation would fall below 2 per cent in the first half of next year.
The economic slowdown would continue into the first few months of next year before a recovery started, he said. The year 2003 will be a good year for the economy, he added.
PA