ECB risks becoming too restrictive, says Cipollone By Reuters

FRANKFURT (Reuters) – The continued decline in euro zone inflation will allow the European Central Bank to cut interest rates further and there is a risk that the bank will keep policy too tight, ECB board member Piero Cipollone told a newspaper French.

“The data so far confirms our direction and I hope it will allow us to continue to be less restrictive,” Cipollone told Le Monde in an interview.

“There is a real risk that our position will become too restrictive,” Cipollone was quoted as saying by Le Monde on Wednesday.

“We need to ensure that inflation converges to our target without stalling the economy unnecessarily.”