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.
“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