European Central Bank Chief Economist Otmar Issing late Wednesday reiterated the ECB currently is pursuing a "no-bias" stance on interest rates, adding that there are upward risks to price stability amidst a mixed picture for economic development. "Interest rates are appropriate and we give no signal, in neither direction," about the future development of interest rates in the euro zone, Issing said at the Frankfurt Club of Economic Journalists. In remarks embargoed for Thursday, Issing said interest rates in the euro zone are at a historic low. "It is absolutely clear that refinancing conditions are no hindrance for higher growth rates in the euro area," Issing said. The ECB has kept interest rates in the euro zone unchanged for more than two years now, arguing that all available data point to price stability over the medium term. The bank's key refinancing rate is at 2%. Issing said the ECB still expects "a gradual improvement in economic activity in the course of the year," but added that risks remain. While the ECB chief economist acknowledged that the central bank had been too optimistic about the recovery at the start of the year and had to cut its growth projections, he also said there is some reason for optimism. "Economic data released after we published our June staff projections give reason for slight optimism," Issing said.