FRANKFURT, Nov 17 (Reuters) - The euro zone economy could shrink over 2009 and it is likely that European Central Bank will cut interest rates again, ECB Governing Council member and head of the Bundesbank, Axel Weber, said on Monday.
The euro zone was officially confirmed as in recession last week and when asked if the euro zone economy could shrink over 2009 as the International Monetary Fund predicts, Weber told reporters it could not be ruled out.
"The growth outlook has dimmed quite noticeably," he said, adding that interest rates could be cut again in response to the problems as long as inflation pressures did not re-emerge.
"We should see noticeably lower inflation rates and into 2010 inflation should be in line with our definition of price stability, which means that we have room to move on interest rates."
"We have used this room twice and I do not think it is improbable that we will use it again," he said. (Reporting by Krista Hughes, writing by Marc Jones; Editing by Ruth Pitchford)