European Central Bank president Jean-Claude Trichet said he does not expect today's multiple bomb blasts in London to have any significant impact on the euro zone or UK economies.
He said the experience of the Madrid bombings in March 2004 suggested that the economic impact of the attacks would be limited.
Trichet said he has talked to Bank of England governor Mervyn King and US Federal Reserve chairman Alan Greenspan about the bombings, and they have concluded that markets are functioning well and there is no immediate need for central bank action.
"We are alert and vigilant. We are monitoring all developments. The markets are currently functioning on both sides of the (English) Channel," he said.