IMF's Lagarde says ECB can do more if needed

VILNIUS (Reuters) - The European Central Bank still has weapons in its arsenal to use if needed, International Monetary Fund chief Christine Lagarde said on Thursday.

"There is no question that monetary policy cannot be a substitute for everything else that needs to be done," Lagarde said in a panel discussion in an event organized by the Lithuanian central bank.

"Unlike many other central banks, the European Central Bank has room to manoeuvre if and when it needs to do so and if it feels it's necessary."

The ECB's main refinancing rate is at a record-low level of 0.5 percent. ECB President Mario Draghi said earlier this month it would keep rates at current or lower levels for an extended period of time.

(Reporting by Andrius Sytas, writing by Sakari Suoninen)