Spanish Economy Minister Pedro Solbes declared on Sunday that he expects the European Central Bank to maintain the current level of its monetary policy interest rate, NewsIn informs, quoting an interview Solbes offered to El Pais. "The ECB is more concerned about inflation and that trend will also affect their thinking," he told the newspaper.

Most analysts believe that ECB should not increase the interest rate from its current 4.25% level and count on the economic growth slowdown to temper the dangerous salary growth. The oil barrel and food price growth may also slow down the process.

"This leads us to think that rate stability may arise, but those are decisions the ECB will adopt in line with its monetary policy strategy", said Solbes, Adding that Spain noted a slowing down of its economy faster than expected. Still, the official believes that the economy will not enter a recession period.

"If oil doesn't bring us any more surprises, if there are no other variables with a negative impact, we think there will be very low or flat growth in the coming quarters, but we are not thinking of a recession", said Solbes.

The Spanish Government estimates a 1.6% growth this year and 1% in 2009.