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ECB expects low inflation in euro zone over medium term

Published on Jan 9, 2014 10:06 PM

FRANKFURT (REUTERS) - The European Central Bank (ECB) expects inflation to remain low for some time but then to move back up towards the bank's target, its president, Mario Draghi, said on Thursday.

He said the expectation for the medium to long term was for inflation to remain "anchored" to the ECB's close-to-but-below 2 per cent target.

Mr Draghi also said there was no change to the ECB's view of how monetary policy would proceed.

"We firmly reiterate our forward guidance and we continue to expect that key ECB interest rates will remain at present or lower levels for an extended period of time," he said at a news conference after the ECB kept its main interest rate at a record low of 0.25 per cent.

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