Euro-zone interest rates are still low and supportive of economic growth, European Central Bank council member Yves Mersch said Wednesday. Thursday, the ECB raised interest rates by 25 basis points, bringing the policy rate to 3.50%. Following the move, ECB President Jean-Claude Trichet said that rates are still low and accommodative of economic activity. Mersch, who is also governor of Luxembourg's central bank, was speaking at the presentation of the bank's second bulletin of this year. "Our monetary policy stance continues to be accommodative and supportive to economic growth within the euro zone," Mersch said. Mersch also said that inflation risks over the medium- to long-term are "clearly upward." In particular, he noted the risk that oil prices could rise more rapidly than expected. "I must admit we have always said we will do what we think is necessary to be done in order to be faithful to our (price stability) mandate." With the council expecting inflation to hover around 2% next year and in 2008, Mersch's comments imply there may well be cause for the council to raise rates again next year, but he stopped short of promising such a move.