Andreas Dombret, a member of the executive board of the Deutsche Bundesbank, told an audience in Dallas, Texas this week that the European Central Bank agrees with the Bundesbank that the risk of deflation in the eurozone is limited.

Nevertheless, Dombret said, the eurozone's central banks are watching developments closely, including "the development of the exchange rate insofar as the strong euro might, at some point, influence price stability".

His confidence that the eurozone would not slip