The European Central Bank last month lowered its key rate for the second time in three meetings, and signaled it would probably proceed gradually, but the governor of the Bank of France said a cut next week was very likely.

Several European Central Bank policymakers argued their case on Wednesday for another interest rate cut next week, even if some of their colleagues remained unconvinced as turmoil in the Middle East fuels volatility in energy costs.

The European Central Bank will very probably lower interest rates next week and will loosen monetary policy again at future meetings depending on progress combating price rises, Governing Council member Francois Villeroy de Galhau said.