ECB council member Miguel Angel Fernandez Ordonez today said there were upside risks to inflation in Europe but downside risks to growth.
"Risks to growth and activity, and price stability in the European Union point to the downside in the first case, and to the upside in the second," Mr Ordonez, Bank of Spain governor, said in an appearance in Spain's parliament.
The US economy is likely to lose strength in coming quarters, but that financial instability was still a problem for global markets, he said.
"The rapid response, led by the US Federal Reserve and European Central Bank, has stopped these tensions from creating additional instability. But it has to be said that these uncertainties remain and complicate the normalisation of the market conditions," Mr Ordonez said.