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Tue, 27 May, 2014 12:03:42 AM
FTimes-Xinhua Report, May 27

 

The Eurozone is at risk of a "negative spiral," European Central Bank (ECB) President Mario Draghi said on Monday. 

Draghi was speaking at a conference in Sintra, near Portugal's capital Lisbon during the ECB forum, which ends Tuesday.

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 on Sunday that central banks should make financial stability their main objective as well as keeping inflation low. 

 
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