The European Central Bank said it will continue to monitor all economic developments very closely to ensure that euro zone inflation remains under control "Very close monitoring of all developments is of the essence so that risks to price stability over the medium term do not materialise," the ECB said in its January monthly bulletin. "Looking ahead, acting in a firm and timely manner to ensure price stability in the medium term is warranted," it said. The ECB said its monetary policy remains accommodative, with key rates still at low levels, money and credit growth very strong, and liquidity in the euro area ample. The bulletin editorial closely matches ECB president Jean-Claude Trichet's introductory statement to last week's ECB news conference. Trichet signalled at the news conference that the central bank is likely to raise interest rates again in March, following rate rises totalling 150 basis points since Dec 2005. The ECB said euro zone growth has remained robust and the medium-term outlook for growth remains favourable. Euro zone inflation is expected to hover around 2 pct this year and next, but the inflation outlook remains subject to upside risks, it added. Inflation was 1.9 pct in December. The rapid rate of monetary and credit growth points to inflation risks in the medium to longer term and therefore requires very careful monitoring, the ECB said.