ECB's Cipollone: We can and should reduce the level of monetary policy restriction

The pace and extent of reduction will depend on dataDevelopments remain consistent with a consumption-led recoveryWhether the recovery will firm up remains to be confirmedWe should not be more restrictive than what is necessary to ensure timely convergence of inflation to targetIt could be self-defeating to tolerate an economy running persistently below potential as an insurance against possible future inflationary shocks This article was written by Adam Button at www.forexlive.com.