FXstreet.com (Barcelona) - Jean Claude Trichet, ECB's president has given ground to the option of a further rate cut in March, while warning about a period of very weak economic growth in the Euro Area for the forthcoming quarters at his first press release after the release of ECB's February monetary policy decision.

The current 2.0% Refi Rate level is not the floor, has affirmed Trichet who added another rate cut could be in the cards for next months meeting. However, the ECB president has affirmed that Zero Interest Rates Aren't Appropriate At Present.

Trichet has given a rather grim economic outlook, as the current economic weakness will be present in the coming months. Economic risks, according to Trichet lie clearly on the downside and, although some signs of stabilisation have been seen, ECB's president observes that those improvements require confirmation on broader basis.

Inflation rates are expected to decline to very low levels by mid year, to increase considerably in the second half of the year, Trichet affirms that inflation rates will fluctuate sharply in 2009. Trichet, in this sense, has reaffirmed the Banks commitment to monitor all developments closely in order to keep CPI expectations firmly anchored.