Papademos says rate correct despite oil price high

European Central Bank Vice President Lucas Papademos said eurozone interest rates are "appropriate," even as the price of oil reaches record levels.

``The current level of interest rates is appropriate,'' Papademos said in an interview. Borrowing costs ``are exceptionally low and correspondingly provide considerable support for economic activity.''

``It's clear that high and possibly increasing oil prices will simultaneously have an adverse effect on growth as well as inflation,'' Papademos sa