Fighting joblessness is an urgent priority for the euro zone economy, European Central Bank President Jean-Claude Trichet said on Thursday.
Trichet, speaking to a conference on the fifth anniversary of the euro, declined to comment on the possibility of a rate cut, which foreign exchange traders have focused closely on since earlier this week.
"It is particularly urgent to find a way to fight unemployment," Trichet said in a panel debate discussing structural reforms needed in Europe. "We need structural reform in Europe if we want growth potential to be higher," he said.
Trichet's comments on Tuesday that the central bank would review its monetary strategy if consumer demand fails to pick up sparked market speculation that an interest rate cut was imminent.
It was the clearest signal yet that the ECB was softening its stance of keeping euro zone rates, already at historic lows of 2.00 percent, on hold.
On Thursday, when asked by a reporter, Trichet declined to comment on the possibility of a rate cut. He also declined to comment when asked if he was worried about the level of demand.
Trichet did comment on inflation during the panel debate.
"When I look at inflation expectations, I find it at 1.8 percent, which is line with our definition of price stability," he said.