RPT-CORRECTED-Euro zone needs low, possibly lower rates-ECB's Coeure

Sat Apr 5, 2014 1:15pm EDT

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(Corrects Friday story to replace "indeed lower" with "possibly lower" in second paragraph, headline)

PARIS, April 4 (Reuters) - A euro zone recovery has arrived but lower interest rates may be needed to nurture it, European Central Bank executive board member Benoit Coeure said in an interview published on the website of Le Figaro newspaper on Friday.

"The markets anticipate an economic recovery," he said. "At the ECB, we consider that the recovery has already arrived, but we know it to be gradual and fragile. We therefore want to accompany it with low, or possibly lower, interest rates, over a prolonged period."

He said the ECB did not see further quantitative easing measures as necessary for the time being but added: "We will continue to follow developments very closely and will act if necessary."

He also said that France "must respect" its commitments to Europe with regard to reducing its deficit.

"It's a question of credibility, and of confidence," he said. (Reporting by Andrew Callus; Editing by James Regan and Kevin Liffey)

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