ECB Vice President Luis de Guindos said the bank has a "perception" that the recent crisis in the banking sector could lead to lower growth and inflation.
In an interview with the Business Post published on the ECB's website, de Guindos explained that their perception of the crisis "is that it will lead to a further tightening of credit standards in the eurozone. Maybe this will find its way to the economy, leading to lower growth and lower inflation."
He said the banking sector was "facing a period of extreme uncertainty", as the approach to interest rate policy is determined at each meeting, with no prior commitment to specific action.
"The question now is how events in the U.S. banking system and Credit Suisse will affect the eurozone economy," the Spanish banker said.
The European Central Bank raised interest rates by 50 basis points to 3.5%, sticking to its policy of combating high inflation despite the turmoil in global financial markets due to the bankruptcy of some US banks.
This is the sixth consecutive rate hike in the eurozone. The ECB is the first major central bank to issue a monetary decision since the collapse of Silicon Valley Bank (SVB) and two other regional U.S. banks, raising fears of a repeat of the 2008 financial crisis.
Although the ECB cut its inflation forecast, figures still suggest that price growth remains above its 2% target for years to come, suggesting that tightening monetary policy is likely to be prolonged.