11 June 2001, 15:04  Portugal's Constancio 'confident' of 2.0-2.5 pct FY euro area GDP growth

BASEL (AFX) - The euro area's full year growth potential is still seen between 2.0-2.5 pct said the Portugal's head of central bank Vitor Constancio. "I feel confident we will remain in the range," he said. Asked about recent inflation development, Constancio replied: "I am confident inflation will decelerate after some temporary effects linked to food prices." Euro area inflation should fall to 2 pct in the coming months he said, adding he believes the ECB's current monetary policy has been preemptive and that the interest rate situation is "appropriate".

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