The European Central Bank is likely to cut interest rates further if current economic trends continue, Governing Council member Luc Coene said during a lunch meeting, a Belgian newspaper reported on Friday.

If the current trends continue, then another rate cut will likely follow, he told a Belgian employers' group lunch on Thursday, according to De Tijd.

Earlier this month, the central bank cut interest rates by a quarter point to 1.25 percent as President Mario Draghi said the euro zone could subside into a mild recession in the latter part of 2011.

Analysts see a 50-50 chance the bank could move again in December.

Coene, who is also governor of Belgium's central bank, added during the lunch that large-scale bond purchases from weak countries was not a sustainable solution.

He said markets could lose confidence in the ECB if they saw a lot of Spanish and Italian bonds on its balance sheet.

The markets would notice that ECB has a lot of Italian and Spanish paper on its balance sheet and they would lose confidence in the ECB, the paper quoted him as saying.

Earlier this week, he said that regulators needed to ensure that banks adequately take account of the level of risk that their holdings of government bonds represent.

(Reporting By Ben Deighton)