ECB's Constancio: Europe not at risk of full deflation cycle

FXStreet (Bali) - ECB Vice President Vitor Constancio, said on Saturday that while Europe is not at risk of entering a "full deflation" cycle, the current rate of inflation is dangerously low, Reuters reports.

Constancio said that for full deflation to materialize, "nominal salaries would have to fall in all member countries and this cannot happen". When asked about how to continue the fight against deflation risks, Constancio said "this has to be done with monetary policy", Reuters reports.