If FX developments continue, ECB action "inevitable" - Mersch

TIRANA (Reuters) - European Central Bank policymakers have made clear that if foreign exchange developments with an impact on inflation continue, the ECB will react, Executive Board member Yves Mersch said on Thursday. ECB President Mario Draghi identified the euro's strength at the weekend as a possible trigger for the ECB to ease policy. Mersch told reporters in Tirana that "if these (foreign exchange) developments would continue, these would inevitably have to trigger a reaction by the ECB in order to maintain our accommodative monetary policy stance." Mersch stressed that the ECB did not react to monthly inflation data, instead taking a medium-term approach. Asked at what level the euro/dollar exchange rate would become a problem for the ECB, he replied: "This question would imply that we have an objective target ... which is not the case. We do not follow an exchange rate objective." "We have a price stability objective that includes both internal and external stability, and I underline the word stability," he added. (Reporting by Benet Koleka; Writing by Paul Carrel; Editing by Robin Pomeroy)