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REPEAT: Constancio - FX Volatility Clouds Price Stab Outlook

MNI (London)
Repeats Story Initially Transmitted at 14:36 GMT Oct 15/10:36 EST Oct 15
By Christian Vits
     WASHINGTON (MNI) - The recent volatility of the euro's exchange rate still
is a concern for the European Central Bank, ECB Vice President Vitor Constancio
said Sunday.
     "There are uncertainties clouding the medium-term outlook for price
stability, most notably the recent exchange rate volatility, which requires
monitoring with regard to possible implications for inflation dynamics,"
Constancio said at the G-30 International Banking Seminar in Washington.
     The inflation outlook from the recent International Monetary Fund's World
Economic Outlook forecasts inflation at 1.5% in 2017 and 1.4% in 2018, which is
broadly in line with ECB projections.
     "Despite robust growth dynamics, inflation developments have been subdued,"
he added. Euro area inflation stood at 1.5% in September, unchanged from the
previous month.
     "It is expected to temporarily decline towards the turn of the year owing
to energy-related base-effects. Measures of underlying inflation have not yet
showed convincing signs of a sustained upward trend," Constancio stressed.
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

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