The European Central Bank's monetary policy is in a process of gradual transition which takes account of turbulence in financial markets, ECB Governing Council member Vitor Constancio said on Tuesday.
"(We) always take into account the objective of financial stability," Constancio told reporters after being sworn in for a second term as governor of the Bank of Portugal.
"In periods of monetary policy transition, that transition is done in a gradual and not sudden form, as has been manifest in all cases and is also in our case. And consequently they are obviously aspects that we take in due account."
Constancio also said the central bank did not need to respond instantly to oil price shocks, as it focused on inflation over the medium term, not on a quarterly basis.
"Inflation has been very slightly above 2 percent. When there are supply shocks - for example in the increase in the price of oil - that tend to have a temporary nature, those types of supply shocks do not have to have an immediate response in terms of monetary policy." The ECB increased euro-zone interest rates to 2.75 percent at the start of June, its third rate rise since December. Many analysts see the ECB raising rates to 3.25 percent by the end of the year.