ECB's Caruana says inflation outlook favourable

European Central Bank governing council member Jaime Caruana said in a speech the euro zone's inflation outlook is relatively favourable and inflation should fall below 2 per cent in the coming months.

The outlook for the euro zone economy was "somewhat more uncertain" following the slowdown in the second half of last year, although the recovery was expected to strengthen gradually in 2005, Mr Caruana, governor of the Bank of Spain, said in a speech.

The speech was given at a private event in

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