"Long-term inflation expectations are stable at under 2 percent, in line with our vision of price stability but we are following developments very carefully," Praet told the Frankfurter Allgemeine Sonntagszeitung.

Asked about a spike in property prices inGermany, Praet said: "We can look back on a period of very low and in some cases negative price developments inGermany. We will monitor the situation in certain parts ofGermanyvery closely."