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Tue 11 Nov 2008ECB members shrug off threat of deflation
European Central Bank policymakers played down the threat of deflation today and said it was important not to overreact to the financial crisis and cut interest rates too far, too fast.
ECB executive board member Lorenzo Bini Smaghi called the risk of deflation "remote", while Greek central bank chief George Provopoulos said the rate cuts and government stimulus together should help prevent a spiral of falling prices.
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