BRUSSELS Feb 14 Policymakers must be careful
not to ratchet up rhetoric about "currency wars", which could
lead to something worse happening, European Central Bank Vice
President Vitor Constancio said on Thursday.
Contradictory remarks from officials from Group of Seven
countries about a G7 statement designed to cool international
currency tensions have only led to more market volatility.
"We have to be cautious in my view not to build up the
rhetoric about currency wars, because if we build up the
rhetoric the danger is there that something worse can happen,"
Constancio told a forum in Brussels.
"The euro has been volatile ... so the situation is what it
is," he added. "We look at the exchange rate because it has an
impact on the inflation rate that we are analysing all the