VIENNA May 12 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)