ECB’s Wunsch: Inflation risk more downward than upward

BERLIN (Reuters) -The risk of inflation is pointing downwards rather than upwards, Belgium’s central bank governor, Pierre Wunsch, told Germany’s Handelsblatt newspaper in an interview published on Thursday.

Speaking on the sidelines of a central bank conference in Sintra, the European Central Bank (ECB) governor cited the fall in energy prices, the continuing strength of the euro and uncertain growth prospects as reasons for the assessment.

Interest rates at the neutral level of 1.5%-2% may not be sufficient, Wunsch said, adding that there are arguments in favour of a moderately supportive monetary policy.

(Writing by Friederike HeineEditing by Madeline Chambers)