ECB's Constancio sees low probability for protracted low inflation

ATHENS, June 19 Thu Jun 19, 2014 7:21am EDT

ATHENS, June 19 (Reuters) - A protracted period of low inflation would be harmful for the euro zone but remains an unlikely scenario, according to prepared remarks by European Central Bank Vice President Vitor Constancio on Thursday.

In the text of a speech to be delivered at a conference in Athens, Constancio reiterated that the ECB stood ready to take measures to avert such a scenario, and that its response would include a broad-based asset-purchase programme.

"The ECB has left no doubt about its resolve to avoid any downward turn in the euro area inflation developments...the policy response would involve a broad-based asset-purchase programme," Constancio said in the text.

(Reporting by George Georgiopoulos and Harry Papachristou)

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