ECB should be cautious not to derail inflation rebound: Constancio

FRANKFURT (Reuters) – The European Central Bank should be “cautious” and avoid tightening its ultra-loose monetary policy too fast to avoid derailing a rebound in euro zone inflation, the ECB’s outgoing vice president Vitor Constancio said on Monday.

“Inflation, which is our objective, has not yet responded completely to what we wish to see,” Constancio, who will step down at the end of May, told the European Parliament.

“We have confidence that inflation will continue to evolve…(but) we should be cautious in order to avoid that some early, strongly restrictive policy could derail this development,” he added.