Austria’s Nowotny says ECB inflation target will be questioned

ECB Governing Council member Nowotny addresses a news conference in Vienna

VIENNA (Reuters) – Inflation rates might remain low in the long term and the European Central Bank’s inflation target of close to but under 2 percent is therefore likely to be questioned, ECB Governing Council member Ewald Nowotny said on Wednesday.

“Interestingly (improving European economic growth) is not resulting in rising prices,” Nowotny said on stage at a Vienna Stock Exchange event. “In my view, the question ‘Is (the inflation target) is still a very realistic aim?’ will be asked.”

Nowotny said it was not necessarily bad to have low inflation as long as there was economic growth at the same time, adding that inflation was still below the ECB’s target.

(Reporting By Shadia Nasralla; editing by Francois Murphy)