Mid-term inflation projections key to ECB action-Constancio

VIENNA Mon May 12, 2014 5:43am EDT

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VIENNA May 12 (Reuters) - The medium-term inflation outlook will be the key factor when the European Central Bank decides next month whether it will need to take fresh policy action amid persistently weak inflation, ECB Vice President Vitor Constancio said on Monday.

"We need to know better after the low inflation monthly figures that we have had recently what will be the prospects for the medium-term path of inflation. That will be the main criteria for any decision by the governing council," he told reporters on the sidelines of a banking union conference.

He noted the ECB was considering a wide range of potential action but declined to speculate on just what the central bank may decide at its June meeting.

He said the ECB was keeping a close eye on the strength of the euro. "It's something of course we cannot ignore and don't ignore but (the exchange rate) is not and cannot be a target for our policy," he said. (Reporting by Michael Shields and Georgina Prodhan)

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