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ECB: strong EUR pressures economy

ECB Governing Council member Christian Noyer said on Monday that the strengthening euro creates unwarranted pressure on the euro-area economy.

"It is clear that when the euro starts to strengthen it creates additional downward pressure on the economy and additional downward pressure on inflation. Both cases aren't warranted at the moment," Noyer said in an interview with Bloomberg TV. "We are clearly not very happy at the moment".

Still, Mr. Noyer insisted that the euro zone isn't facing deflation. "Low inflation is not deflation," Mr. Noyer later told a panel discussion at the Bank of France. "There's no deflation today in the euro area: prices are still increasing, and most importantly, so are the nominal wages."

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