FRANKFURT, March 17 - European Central Bank chief economist Otmar Issing was quoted on Wednesday as saying that there was no need to stabilise euro zone confidence by lowering interest rates. "Key interest rates are at an historic low and are zero if adjusted for inflation," Issing told the German magazin Capital in an interview. He added that he saw "no further need for action" to stabilise sentiment with lower interest rates. The ECB's policy stance was still very expansive and "certainly no hindrance to more growth," Issing said, and there was no need to depart from the central bank's forecast of a continuing euro zone recovery. But Issing also struck a warning note over consumer and investor expectations. Bomb attacks such as the ones last week in Madrid, local conflicts and ongoing violence in the Middle-East all took their toll on the outlook for shoppers.|||