Garganas also said there was nothing to prevent the ECB from raising rates at the Aug. 3 meeting, which will be held via teleconference. This would be an unprecedented move. "All the options are open at every meeting depending on the data, including the teleconference meeting," he said. "Should there be a need for an adjustment on Aug. 3, I don't see what could prevent us from taking such a decision," he said. Garganas noted a spike in producer prices is an "indication of some passthrough of past oil prices," and said ECB staff projections point to an inflation rate of around 2.3% this year and 2.2% in 2007. "If these projections materialize, then next year will mark the eighth consecutive year in which the inflation rate would be above 2%," he said, adding "this is not consistent with our price stability goal." The ECB defines price stability as an inflation rate below, but close to, 2%. Garganas said euro-zone economic growth may exceed staff projections of 2.1% growth for this year and 2.2% next year, noting rising interest rates haven't hurt the euro-zone economy. "My feeling is that perhaps things will turn out to be somewhat better than projected this year and probably next year," Garganas said.