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No deflation in euro zone, says European Central Bank chief

Published on Feb 6, 2014 10:44 PM

FRANKFURT (AFP) - European Central Bank (ECB) chief Mario Draghi said on Thursday that the euro area is not experiencing deflation - a widespread sustained fall in prices - even though inflation is very low.

"Is there deflation? The answer is 'No'," Mr Draghi told a news conference after the ECB held its key interest rates steady for the third month in a row.

There had been speculation that the ECB could cut its key rates - currently at historic lows - this week after euro zone inflation came in lower than expected in January.

The annual rate of inflation slowed to 0.7 per cent last month from 0.8 per cent in December.

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