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M. Continuo

ECB's Mersch says euro zone growth above potential: report


    FRANKFURT (Reuters) - Euro zone growth is set to be above its ideal non-inflationary "potential" rate for 2011 and 2012, but inflation expectations remain anchored, European Central Bank Governing Council member Yves Mersch was quoted as saying.

    "We are for the moment having an economic performance for this and next year which is above the growth potential," Mersch told South Korean newspaper Korea Herald in an interview conducted last Wednesday and published on Monday.

    "That unemployment is falling, that inflationary exceptions are well anchored; that the institutions which are in charge of the euro on the monetary side can concentrate fully on their objective of delivering price stability over the medium term."

    (Reporting by Sakari Suoninen; editing by Patrick Graham)