Francois Villeroy de Galhau, a member of the European Central Bank's governing council, says that negative interest rates have been an effective tool but that they have their limits.

Speaking about the policy's performance combating deflationary pressures at a Bank of France press conference this morning, Villeroy said:

"We think that they have been effective, but they naturally have their limits".

Peter Praet, executive board member of the European Central Bank (ECB), stated last week that there is still scope for the ECB to cut interest rates even lower.

Following the ECB's most recent cut, ECB President Mario Draghi appeared to rule out cutting interest rates any further. 

Villeroy also noted that there has been no sign of "deflationary dynamics" emerging - falling prices weighing on wages.

He highlighted the ECB's "internationally cooperative attitude" as they attempt to stimulate the Eurozone's economy, pointing to the decision this month against a tiering system which would have exempted banks from negative interest rates.