June 9, 2017 / 9:42 AM / a year ago

ECB's Nowotny sees risk of stronger euro denting inflation

VIENNA (Reuters) - The balance of risk in the euro zone points to inflation slowing and thereby complicating the European Central Bank’s task of setting monetary policy, especially if the euro appreciates, ECB Governing Council member Ewald Nowotny said on Friday.

European Central Bank (ECB) Governing Council member and OeNB governor Ewald Nowotny addresses a news conference in Vienna, Austria, June 9, 2017. REUTERS/Leonhard Foeger

“We have more of a downside risk than an upside risk and, again, that is a significant challenge for ECB policy,” Nowotny told a news conference.

Asked if that was what ECB President Mario Draghi was referring to on Thursday when he mentioned “observations” within the ECB on “normalisation”, and whether there had been dissenting voices, Nowotny said: “Could there be an appreciation of the euro, yes or no? ... They are not dissenting voices. They are simply differing economic opinions.”

Reporting by Francois Murphy; Editing by Gareth Jones

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