ECB rates could stay at historic low

The European Central Bank's top economist has said inflation is likely to be subdued for two years, suggesting its main interest rate could remain at 1% for longer than had been expected.

Juergen Stark said he does not see risks for price stability from now to the end of 2011.

The rate has stayed at a record low of 1% since last May.

However, many economists expected a gradual increase starting later this year as the 16 eurozone economies begin to recover from recession.