BRUSSELS (Reuters) -- European Central Bank President Wim Duisenberg yesterday again defended the ECB's surprise May 10 decision to trim its key lending rate by 25 basis points, citing the likely path of future inflation.

In prepared remarks to a European Parliament committee, Duisenberg reiterated the ECB's governing council now no longer saw a future inflation risk from growth in money supply while slower than expected economic growth should also "dampen upward pressure on consumer prices."

In contrast to remarks made by Bundesbank President Ernst Welteke last week, Duisenberg made no reference in his introductory comments to the euro's current exchange rate as a factor of concern for future inflation.

Duisenberg, speaking just days before euro area finance ministers meet to consider next years budgetary policies, said slower growth was no excuse for governments to let up on fiscal and economic reforms.

"In fact, economic growth lower than previously expected should not be a reason to miss budgetary targets in countries with remaining fiscal imbalances," he said.

He also reiterated the ECB's desire to see wage settlements kept in line with the ECB's inflation target.

"On the basis of the information available, the current stance of monetary policy is appropriate to ensure that the euro area will be able to maintain price stability over the medium term," Duisenberg said.

"Nonetheless, while recent wage developments have been encouraging, we will monitor very closely the upward risks to price stability related to the risk of possible second-round effects of past oil price increases on consumer prices via wages."

Separately, Duisenberg reiterated the ECB's opposition to early introduction of euro notes to the general public.

"The reasons for this decision... are still valid and there are, according to our assessment, no new elements which would justify a renewed reflection on this issue at this late stage of preparations," Duisenberg said.