Eurozone at risk of negative spiral: ECB president

Eurozone at risk of negative spiral: ECB president

8Lisbon, May 27 (IANS)┬áThe Eurozone is at risk of a “negative spiral”, European Central Bank (ECB) president Mario Draghi said Monday.

Draghi was speaking at a conference in Sintra, near Portugal’s capital Lisbon, during the ECB forum that ends Tuesday, Xinhua reported.

The ECB forum is expected to come up with answers on how to recover from low inflation threatening the Eurozone.

“We have to be particularly vigilant regarding the potential of a negative spiral caused by low inflation and falling inflation expectations and credit,” Draghi said.

The eurozone economy has lost momentum in 2014, growing 0.2 percent, much lower than what many economists had predicted.

Managing director of the International Monetary Fund (IMF) Christine Lagarde warned in the opening speech of the ECB forum Sunday that central banks should make financial stability their main objective as well as keeping inflation low.

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