ATHENS (Reuters) - The European Central Bank is "carefully monitoring" the unfolding crisis in the Middle East and the impact it may have on the euro zone economy, its chief Christine Lagarde said on Wednesday ahead of a Governing Council meeting in Athens.
"We are particularly attentive," she said in an interview with state television ERT during the ECB's week-long quiet period ahead of its Thursday rate decision.
"It is a region of the world where there is a lot of traffic of oil tankers, where there are oil producing countries as well and where there could be an impact either directly or indirectly or through the confidence channel, which also matters," she added.
Oil prices were little changed on Wednesday after an increase in U.S. crude stockpiles and as demand worries stemming from gloomy economic prospects in Europe offset concerns about conflict in the Middle East escalating.
The ECB raised its key interest rates by 25 basis points in September, taking the deposit rate to 4% and the refinancing rate to 4.50%, but signalled its 10th increase in a 14-month-long streak was likely to be its last for now.
Inflation in the euro zone has been on a downward trajectory, although September's 4.3% reading was still double the ECB's 2% target.
Lagarde also urged governments to help the central bank by withdrawing support measures put in place at the height of the energy crisis.
"That would be the best way...to tame inflation and bring it back to 2% in the medium term," she said in another interview with Greek Skai TV.