PARIS (Reuters) - European Central Banker Christian Noyer said on Monday that the weakening of the euro is desirable, as the currency appreciation not only disturbs economic recovery but also hinders the return of inflation to its target level of about 2 percent.
Asked in an interview with daily newspaper Le Figaro if weakening the euro should be the ECB's priority, Noyer, who is governor of the Bank of France, said: "This decrease is desirable, but it is easier to invoke than orchestrate.
"The stronger the euro is, the more accommodative policy is needed".
The issue of weak euro zone inflation took centre stage at meetings of top finance ministers and central bankers over the weekend, with the International Monetary Fund's steering committee urging the ECB to consider acting if low inflation became persistent.
"If the period of low inflation lasts longer than expected, we would have at our disposal many tools that we have used in recent years," Noyer was quoted as saying.
"Lower interest rates, and we can always discuss whether to go further when they are close to zero -- long-term refinancing operations for banks, unlimited liquidity supply. We have also resorted to purchases of sovereign and banking assets and forward guidance".
Noyer said the ECB's monetary policy does not explain the current strength of the euro, as monetary easing helped bring interest rates below the level in the United States.
"The euro is actually abnormally strong given the position of the euro zone in the economic cycle and the delay in the resumption of growth, compared to others, including the United States," Noyer said.
A further strengthening of the euro exchange rate would require more loosening in the European Central Bank's monetary policy to keep the overall policy stance as accommodative as it is now, ECB President Mario Draghi said on Saturday.
(Reporting by Yann Le Guernigou; writing by Maya Nikolaeva; Editing by Leslie Adler)