Feb. 11 (Bloomberg) -- European Central Bank council member Guy Quaden said he’s “absolutely ready” to lower interest rates further as the recession deepens.

“Given the prospects of significantly deteriorating activity and low inflation, I am absolutely ready to go below 2 percent,” Quaden said at a press conference in Brussels on Feb. 9. “I don’t object in principle, and I think that’s the case for a lot of my colleagues, to lowering our interest rates when that’s justified. A level of 2 percent has never been a taboo for me.” The comments were embargoed until today.

The ECB has reduced its key rate by 2.25 percentage points since early October to 2 percent, matching a record low, to fight Europe’s worst recession since World War II. While President Jean-Claude Trichet signaled last week the bank may cut rates further in March, he said it would be “inappropriate” to lower the benchmark to zero, as central banks including the U.S. Federal Reserve have done.

“I’m not in a hurry to go toward zero rates, or close to zero,” said Quaden, who heads Belgium’s central bank.

Athanasios Orphanides is the only ECB council member so far to have advocated the idea of zero rates. The suggestion that monetary policy becomes ineffective when rates are close to zero is a “dangerous” fallacy, Orphanides said in a Jan. 28 speech.

Quaden said it “isn’t surprising or unhealthy” that there are “discussions” on the Governing Council. “Rather the opposite, it’s perfectly desirable,” he said.

Asked if the ECB would consider quantitative easing measures to stimulate the economy, such as buying assets, Quaden said policy makers are “not dogmatic.”

“We are always ready to consider, at the appropriate time, the most appropriate measures,” he said.

To contact the reporters on this story: Christian Vits in Frankfurt cvits@bloomberg.net; John Martens in Brussels at jmartens1@bloomberg.net

Last Updated: February 11, 2009 00:00 EST