The European Central Bank is keeping all its options for monetary policy open but expects inflation to remain in check in the medium-term, ECB Governing Council member Klaus Liebscher said on Monday. "We're open in all directions," Liebscher told reporters in the sidelines of a meeting of top world central bankers at the Bank for International Settlements. Asked about the impact of high oil prices on the inflation outlook, Liebscher said price stability -- which the ECB defines as inflation below, but close to, two percent -- should be reached this year and the next. "I'm not relaxed, but I'm also not overly concerned. I think this oil price development will work its way through and (inflation) will calm down," Liebscher said. The ECB on Thursday meets to decide on interest rates and is widely expected to remain on hold throughout the rest of the year and then start tightening credit as the euro zone economy is recovering.///www.reuters.com