Berlin - German Finance Minister Peer Steinbrueck has urged the European Central Bank (ECB) to be cautious in raising rates amid signs of an economic downturn, in an interview published Saturday by Der Spiegel news magazine.

"The ECB must consider that they could be sending the wrong signal with a rate hike, because this could have a pro-cyclical effect in an economic slowdown," Steinbrueck said ahead of an ECB meeting next week, when a rate hike announcement is seen as certain.

The German government has in the past refrained from offering advice to the ECB, aware that ECB President Jean-Claude Trichet guards the bank's independence closely.

Last year Trichet brushed aside repeated criticism from newly elected French President Nicolas Sarkozy, who urged the bank to cut rates to boost the European economy.

Trichet has signalled that when Governing Council meets in Frankfurt on Thursday it will raise the key refinancing rate to 4.25 per cent from 4.00 per cent, where it has stood for the past year.

Pointing to surging inflation on the back of soaring energy, food and metals prices, the ECB president has not ruled out further increases in the months ahead, despite signs that the global economy is slowing.

Eurozone inflation in May stood at 3.7 per cent, well above the ECB's target of slightly under 2.0 per cent. (dpa)