The European Central Bank said its interest rates remain low even after last week's rate hike. "Overall, after this increase, the key ECB interest rates are still low by historical standards, liquidity is ample and monetary policy remains accommodative," the ECB said in its June monthly bulletin. The ECB raised its main refinancing rate to 2.75 pct from 2.50 pct at its June 8 council meeting in Madrid. The central bank said euro zone inflation is likely to remain above 2 pct this year and next, and there are risks that it could even overshoot current expectations. "While the moderate evolution of labour costs in the euro area is expected to continue in 2007...indirect effects of past oil price increases and the announced changes in indirect taxes are expected to have a significant upward effect on inflation," it said. Eurosystem staff are currently projecting that inflation will average 2.3 pct this year and 2.2 pct next year. But economic growth has picked up and all recent economic data have been positive, the ECB said. And the recent further acceleration in money and credit growth points to increased risks to price stability in the long term, it said. The ECB said the June 8 rate hike will help anchor longer-term inflation expectations, but it will continue to keep a close eye on inflation risks. "The governing council will continue to monitor closely all developments to ensure price stability over the medium and longer term," it said. The bulletin editorial closely matches ECB president Jean-Claude Trichet's introductory statement to last week's ECB news conference.