The European Central Bank (ECB) Executive Board member Peter Praet said in an interview to the Italian newspaper La Repubblica on Friday that the central bank could cut its interest rate further into negative territory if risks to the outlook rise.

"If new negative shocks should worsen the outlook or if financing conditions should not adjust in the direction and to the extent that is necessary to boost the economy and inflation, a rate reduction remains in our armoury," he said.

Praet noted that it was the right decision to expand stimulus measures.

"What we have got at the end makes sense from an economic point of view," he said.