Central bank governor, Mr John Hurley gave a pessimistic assessment of the euro zone's growth prospects tonight warning currency dealers in Dublin that the sluggish pace of consumer spending was threatening the recovery.
"Until there is some improvement on this front, the euro area recovery will continue to be unconvincing," he added. A number of euro zone bankers echoed the cautious remarks over future economic prospects today, citing the uncertain impact of the Madrid bombings and the slow pace of consumer spending.
"All the indicators still point to our central scenario of moderate growth,", Mr Jaime Caruana, who heads the Bank of Spain, told reporters at a luncheon.
Mr Caruana said the ECB's next meeting, scheduled for April 1st, could produce a preliminary study of the impact of the Madrid train bombings on the economy.
Later, in a speech to businessmen, he said euro zone inflation prospects indicated price stability ahead, and added Spain itself was in good shape to deal with any fallout from the bombings.
In Berlin, the Bundesbank President Ernst Welteke said he saw "certain risks" for Germany. But he saw no reason to revise downward growth forecasts for Europe's largest economy.
Financial markets are looking for any clues on whether a softening growth outlook for the 12-nation euro zone will prompt the ECB to cut interest rates, with European debt futures pricing in a 50 per cent chance for a cut in June.
Key to that decision could be consumer behaviour, which ECB policymakers are watching closely because household spending accounts for close to two-thirds of euro zone output. It remains very sluggish despite record low interest rates and a global pick up.
But Mr Caruana said more time and data are needed. "It is still early to talk about possible impacts on the economy," he said.
The financial markets weakened after the attacks that killed 202 people, but he said they are "still not reliable to indicate what will happen to sentiment".