ECB Executive Board member Benoit Coeure said on Friday that he saw inflation in the euro zone moving away from the bank's 2 percent target over the next 18 months and that this needed to be monitored carefully.

Euro zone inflation slipped for the third month running in March to an annual rate of 1.7 percent, compared to the European Central Bank's target of close to, but not above, two percent.

Coeure also told reporters that monetary policy alone could not resolve problems with credit flows in the region.

(Reporting by Leigh Thomas and Ingrid Melander; Writing by Catherine Bremer; Editing by Christian Plumb)