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BRUSSELS, March 7 (Reuters) - Cutting interest rates in the euro zone will not solve the financial crisis though there are some signs that lending among banks is improving, a European Central Bank executive board member said. "The financial crisis cannot be solved with interest rate cuts. An excessively low interest rate level can even be conterproductive," Juergen Stark told Luxembourg newspaper Tageblatt in interview made available to the media on Saturday.
The ECB cut its main interest rate by 50 basis points to a record low of 1.5 percent on Thursday.
Asked why interbank lending had still not recovered despite the amount of liquidity banks were receiving, Stark said:
"There are some signs that tensions are easing. For example, the allotment volumes of our refinancing operations are declining, while the number of banks taking part in the operations is also falling.
"The gap between interest rates for secured and unsecured interbank loans has also fallen somewhat."
Stark said the ECB remained committed to targeting inflation of just below two percent.
"Our goal and mandate is to secure price stability in the mid-term -- i.e. to avoid both inflation and deflation. If our view of the risks for price stability changes we will obviously respond accordingly," he said.
"At the moment, however, neither the monetary nor the economic analysis points to an acceleration of inflation in the mid-term," Stark added.
He noted that stimulus measures adopted by governments to boost the flagging economy should be limited in duration.
"If fiscal policy is expansive over a lasting period, there is certainly the danger in the mid-term that additional inflationary pressure will build up," Stark said.
Governments needed to be mindful of remaining committed to solid finances or public budgets risked becoming unsustainable in the long-term, Stark said. (Reporting by Huw Jones and Dave Graham in Berlin, editing by Mike Peacock)