LA PAZ, Sept 29 (Reuters) - The European Central Bank's Jose Manuel Gonzalez-Paramo on Wednesday refused to be drawn on whether the bank would increase purchases of government bonds as debt spreads for vulnerable euro zone nations hit record highs.
"We do not say how or when" we will intervene, ECB executive board member Gonzalez-Paramo told reporters during a visit to Bolivia's political capital, La Paz.
Bond yield spreads for Ireland and Portugal have widened due to growing concerns over their burdensome debt loads.
Gonzalez-Paramo also said interest rates in the euro zone were at an appropriate level, reiterating recent ECB forecasts for economic growth both this year and next.
"With regard to interest rates, we believe they are adequate but we are fully disposed to act to comply with our mandate," he added.
Asked about Brazilian Finance Minister Guido Mantega's statements about an "international currency war," Gonzalez-Paramo declined to comment.
But he did say foreign exchange volatility was "bad." For more see [ID:nN29268984]. (Reporting by Carlos Quiroga; Writing by Hilary Burke; Editing by James Dalgleish)