European Central Bank (ECB) president Jean-Claude Trichet indicated on Thursday the bank will probably cut interest rates in March in an effort to stabilize the economic decline.

Trichet said he did not exclude the bank's governing council lowering rates from the current 2.0 percent at its next policy meeting in March.

"We confirm that 2 percent is not the lowest level...I don't exclude that we could decrease rates at our next meeting," Trichet told reporters.

However, zero interest rates were not appropriate "at this stage," he said.

The Frankfurt-based ECB on Thursday kept the interest rate steady at 2 percent after four cuts since October.

Asked whether the ECB will cut the rate by 50 or 25 basis point in March, Trichet said "the first figure" is more likely.

"We are not embarking on qualifying the amplitude, but I have noted that what is at the moment, as we speak, present in the market would probably be more the first figure that you have mentioned," Trichet said.

He said inflation risks were being "broadly balanced" and economic uncertainties remained very large.

Trichet's remarks are in line with experts' anticipation that the rates will fall to 1.5 percent in March and 1 percent later in the year.

(Xinhua News Agency February 6, 2009)