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2010.09.0809:34:00UTC+00ECB's Quaden: Deflation, Double Dip Unlikely

Deflation in euro area is as unlikely as sharp inflation, European Central Bank Governing Council member Guy Quaden said in an interview with Belgian business dailies L'Echo and De Tijd, published on Wednesday.

It is assumed that inflation would be around 2% in the coming years, close to the target of ECB, Quaden said.

He said a double dip in Europe is unlikely. "We start from a positive, albeit weak, growth in the coming quarters," the policy maker said. The economy will not relapse into recession, according to Quaden.

Further, he noted that there is no need for brutal and immediate austerity, except in a case such as in Greece. A credible plan for budget consolidation is needed, he added.

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