Don't Rule Out More Joint Cuts: ECB Member

European Central Bank council member Miguel Angel Fernandez Ordonez said on Thursday he does not rule out further coordinated cuts in major central banks' interest rates but added they seemed unlikely in the short term.

"In the short-term it seems absurd, but I don't rule anything out. I think yesterday's move was very important," Ordonez said when asked if he saw more coordinated interest rate cuts.

Ordonez added that the ECB's half point rate cut to 3.75 percent in a coordinated move with the U.S. Federal Reserve and other major central banks on Wednesday was unanimous.

"I think yesterday's decision was very important and I hope it helps to restore confidence," Ordonez said. "It allows us to take a proper look at what we should do. For the moment no decisions have been taken."

Speaking on the sidelines of a news conference, the Spanish central bank's governor stressed that the financial crisis was so grave it was hitting the real economy and diminishing risks on inflation.

"The contraction of the economy caused by the impact of the financial turmoil, is going to reduce the risk of inflation. It will depend on variations in inflation, we are focused on inflation," Ordonez said.

"We were very cautious in the last meeting and we maintained rates. What has happened is that since the bankruptcy of Lehman Brothers, these 15 days which have moved the world, the scenario has radically changed," he said.

"We are conscious that this (crisis) is going to have an impact on the real economy and therefore it didn't make sense to maintain rates," he added.  

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