The European Central Bank's current interest rate settings are appropriate, ECB Executive Board member Ms Gertrude Tumpel-Gugerell has said in a newspaper interview.
She told Germany's Boersen-Zeitungthe ECB sees no evidence that euro zone inflationary pressure is increasing but there are still risks to price stability in the medium term.
Asked about possible inflationary pressures from excessive liquidity and high lending rates, Ms Tumpel-Gugerell said the ECB kept a close watch on market developments.
"We think the market has ample liquidity available at the moment to meet its financing needs," she told the newspaper.
"Despite this fact our overall assessment remains unchanged, and that is that current monetary policy settings are appropriate."
The ECB left benchmark interest rates at 2.0 percent in the 12-nation euro zone in December. The board considered a rate hike before opting for an 18th month on hold.
In the interview, Ms Tumpel-Gugerell said there was no room for complacency on inflation because of the ongoing risk from higher oil prices, rises in indirect taxes and administrative prices.