European Central Bank president, Mr Wim Duisenberg, said yesterday that the European Central Bank (ECB) would be averse to deflationary as well as inflationary trends. "Deflation in the measured price index would not be considered to be consistent with price stability," he said, adding that price stability was the ECB's primary goal.

His remarks came in the text of a speech to be delivered in New York. The ECB has a ceiling for its inflation corridor, but not a floor, mainly due to calculation distortions, Mr Duisenberg said.

Mr Duisenberg said the European System of Central Banks would not promote the euro as an international currency and would not deliberately challenge the dollar.