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MNI BRIEF: ECB Must Avoid Policy Being Too Tight - Panetta

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The European Central Bank must prevent monetary policy from becoming excessively tight and then “pushing inflation below ECB’s symmetric target”, Bank of Italy Governor Fabio Panetta

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The European Central Bank must prevent monetary policy from becoming excessively tight and then “pushing inflation below ECB’s symmetric target”, Bank of Italy Governor Fabio Panetta said in a speech on Friday.

He noted that if “the incoming data is consistent with the current projections, it will be appropriate to ease monetary conditions” and, referring directly to the path of rate cuts, stressed that “prompt and gradual action would contain macroeconomic volatility better than a tardy and hasty approach”. (see MNI SOURCES: Fed, Geopolitics, Feed ECB Caution Over Cuts)

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The European Central Bank must prevent monetary policy from becoming excessively tight and then “pushing inflation below ECB’s symmetric target”, Bank of Italy Governor Fabio Panetta said in a speech on Friday.

He noted that if “the incoming data is consistent with the current projections, it will be appropriate to ease monetary conditions” and, referring directly to the path of rate cuts, stressed that “prompt and gradual action would contain macroeconomic volatility better than a tardy and hasty approach”. (see MNI SOURCES: Fed, Geopolitics, Feed ECB Caution Over Cuts)

Keep reading...Show less