Markets may be too optimistic on inflation, ECB's de Guindos tells Sueddeutsche

BERLIN (Reuters) - The European Central Bank may raise interest rates further after March, European Central Bank Vice-President Luis de Guindos told the Sueddeutsche daily, adding financial markets may be too optimistic about the inflation outlook.

"I would not rule out that there will be further interest rate hikes after March. The fight against inflation is not won," he was quoted as saying on Wednesday.

"It could well be that financial markets are too optimistic in terms of inflation developments and our monetary policy reaction," he said.

The ECB raised interest rates by half a percentage point last week and pencilled in a move of the same magnitude for next month but kept options open for its following meeting in May, with sources telling Reuters they expected a 25- or 50- basis-point increase then.

(Reporting by Madeline Chambers; Editing by Sandra Maler)