European Central Bank president Mario Draghi cautioned yesterday against undue optimism for the euro zone economy, saying there still were significant risks of setbacks to the recovery.

Mr Draghi said in an interview with the Swiss daily Neue Zuercher Zeitung that he is not too concerned about either inflation or deflation.

“We do see encouraging signals and the first signs of an economic recovery in the euro zone, but it is still weak and uneven,” he said.

“All in all, the risk of setbacks is large. I would be very careful not to give an overly optimistic outlook.” (Reuters)