ECB's Visco says inflation expectations under control: newspaper

FRANKFURT (Reuters) - The European Central Bank would need to act preemptively if inflation expectations were to fall too far but the situation is under control for now, European Central Bank Governing Council Member Ignazio Visco told a German newspaper.

"I would not say that we are observing a dramatic fall in inflation expectations at the moment," Visco, who is also Italy's central bank governor, told Boersen Zeitung. "The situation is under control."

"But we have to be very cautious: once expectations have fallen too much it is very hard to turn them around again," he added. "Therefore we need to act before this happens. Acting preemptively and aggressively may mean having to act less than you would have done, had you acted too late."

(Reporting by Balazs Koranyi; editing by John O'Donnell)

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