HIGHLIGHTS-Trichet comments after ECB cuts rates to 1.5 pct

FRANKFURT, March 5 (Reuters) - The following are comments by European Central Bank President Jean-Claude Trichet on Thursday after the bank cut interest rates to an all-time low of 1.5 percent.

COULD RATES GO DOWN MORE?

"We did not decide ex ante that we were at the lowest level. If justified by facts, figures...if some of the risk that I am mentioning are materialising, I don't exclude that the policy rate could be changed and could go down."

"We did not decide to exclude that ex-ante -- that's absolutely clear."

"With the deposit rate at the present level, which is 0.5 percent, are already at very, very low rates."

HAVE RATES BOTTOMED?

"We did not decide ex ante that this was the lowest point that we could attain. Further decisions will depend on facts, figures, judgement on the basis of Governing Council discussions."

ZERO RATE POLICY

"On why we think that zero interest rates has a lot of inconvenience, I will not elaborate on that. It is clearly an assessment that we are making."

STAFF GROWTH PROJECTIONS

"Looking ahead, the governing council expects that both global and domestic demand will decline in 2009 and thereafter recover gradually. This assessment is also reflected in the March macroeconomic 2009 staff projections for the euro area which place annual real GDP growth in a range of -3.2 pct to -2.2 pct in 2009 and between -0.7 pct and +0.7 in 2010.

"These ranges represent the downward revision of the December 2008 staff projection."

STAFF INFLATION PROJECTIONS

"For 2010 ECB staff project HICP inflation at between 0.6 percent and 1.4 pct. This range also represents a substantial downward revision compared with December '08 euro system staff macro economic projections, mainly reflecting the change in the economic growth outlook. Available forecasts from international organisations have also been revised downwards and broadly confirm an outlook of moderate inflation rates in 2010."

FUTURE RATE DECISIONS

"We will do whatever is necessary and I will not comment more on the future decisions. I said only that we had not decided ex ante that we were at the lowest point as regards the main refinancing operation interest rates.

I only mentioned that at 0.5 percent the deposit rate was at a very low level also taking into account that the unlimited supply of liquidity which we operate and are bound to operate for a long period of time is something which of course pushes down the EONIA much far away from this deposit facility rate and that is the only remark I made."

ECB'S HANDS NOT TIED

"Our hands are not tied at all. We do whatever we judge appropriate to do, taking into account the situation. We're not exactly, as everyone knows that, in the situation of the United States, or in the situation of the UK, then we have to optimise what we do ... I exclude nothing. If our hands were tied in certain direction, I would say at this stage that we have a sense that we would exclude this and that, but I don't say that."

EURO ZONE MEMBERS IN TROUBLE

"As regards the issue of countries that are members of the euro area that might could be in extreme difficulty, I have to say that the euro is an area where you have automatic help -- considerable automatic help -- through the very existence of the single currency itself.

"For instance, the balance of payments deficits -- if there are (any) -- are financed automatically by virtue of belonging to the euro area. So let's not forget that.

"At this stage I have confidence in the capacity of the governments of the euro area, in line with our eminent responsibility, each of them, to convince their own people and the markets that they are going in the right direction and that they are credible as regards the medium- long-term path of sound policies, sound fiscal policies."

EASTERN EUROPE

"On the Eastern European (question), I would say that at this stage our position would be that it is extremely important that we do not change any framework. We have rules, we have established I would say rules, whether for belonging to the ERM2 or for the euro, I would say that sticking to the rules as they are is very important for the stability of, I would say, the European Union as a whole. I would say it's not good to suggest that some are in such a weak situation that you would transform the rule for the sake of that situation. I trust really that it is important to stick to the present framework as it is."

EURO ENTRY CRITERIA

"At the moment I'm speaking I have to say that with the commission and with the governments as a group to consider that it is not appropriate to reflect on transforming, loosening or whatever the criteria." (for euro entry)

"If and when particular countries might have major difficulties - it is always possible that there is help which comes from the European Union itself. Help coming from the commission that is backed by governments. It can come on a bilateral basis...you have also help from international institutions."

NOT TAKING INFLATION FOR GRANTED

"When you look at the medium term inflation expectations whether they're extracted from suveys or whether they're extracted from the financial markets, on a medium term basis they are extremely well anchored. I touch wood, we have to take care of that, it is not something which is be taken for granted eternally."

CONSULTING ON NON-STANDARD MEASURES

"We are consulting as regards non-standard measures very much on what is fitting with the very structure of the euro area."

"In terms of quantity, we have already enormous quantitative risk-taking that is very visible."

NON-STANDARD MEASURES

"We are discussing and studying possible new non-standard measures. I will not elaborate on that. We have absolutely no pre-commitment to any particular non-standard measure. I don't exclude anything and I will give you a rendez-vous if and when we decide, then I will be very very happy to explain what we will have decided but we are studying possible additional non-standard measures."

IMPORTANT DECISIONS

"Time is short and that's the reason why we are taking important decisions. We took important decisions in the past month and we took important decisions today and these commitments that, as you might have seen, are commitments beyond the end of the year.