IMF's Lagarde says low inflation could derail euro zone recovery

BILBAO, Spain, March 3 Mon Mar 3, 2014 5:00am EST

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BILBAO, Spain, March 3 (Reuters) - The head of the International Monetary Fund said on Monday that prolonged low inflation could put at risk the euro zone's economic recovery.

"The risk of prolonged low inflation - inflation substantially below the ECB's price stability objective of 2 percent - is also looming and could derail the recovery," IMF Managing Director Christine Lagarde told an economic conference in Bilbao, northern Spain.