Czech cbanker sees no big deflation danger-Bloomberg

PRAGUE, March 19 (Reuters) - The Czech economy is not in danger of long-term deflation right now that would justify using foreign exchange interventions to ease monetary policy, central bank Vice-Governor Mojmir Hampl said in an interview with Bloomberg.

"For me personally, a trigger for conducting interventions would be the moment when I see a highly probable risk of a long-lasting, devastating deflationary spiral," he said.

"From the current perspective, I personally don't see such a strong risk yet. It can't be ruled out that this risk will appear in the future, but I don't see it materialising for now."

Hampl said interventions would be used solely to stabilise inflation near the bank's 2 percent target, and not to help exporters.

He said the economy's main problem was weak domestic demand, and that he saw no clear signs of recovery.

(Reporting by Jan Lopatka; Editing by Jason Hovet)

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Keywords: CZECH CBANKER/HAMPL