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Many at ECB support containing deflation risk as oil falls: ECB's Visco

[ROME] Oil price declines will weigh on already-low inflation in the euro area in coming months and many members of the European Central Bank support acting to contain the risk of deflation, ECB governing council member Ignazio Visco said on Monday.

The effect of oil price falls on inflation "will be worse in coming months," Mr Visco said in testimony to parliament. "At the ECB, many of us support moving to contain these risks."

The ECB cut its inflation forecasts earlier this month, mainly to reflect lower oil prices. ECB President Mario Draghi is considering buying sovereign debt next year to prevent the eurozone slipping into a deflationary spiral.