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MNI BRIEF: ECB Risks Undershooting Inflation Target -Panetta

MNI (LONDON) - The European Central Bank’s focus should be now “on the sluggishness of the real economy” as inflation subsides as without recovery there is a risk of undershooting the 2% inflation target, Bank of Italy Governor Panetta said in a speech on Thursday.

If inflation undershoots it would open a “scenario that would be difficult for monetary policy to counteract and should therefore be avoided”, he said.

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MNI (LONDON) - The European Central Bank’s focus should be now “on the sluggishness of the real economy” as inflation subsides as without recovery there is a risk of undershooting the 2% inflation target, Bank of Italy Governor Panetta said in a speech on Thursday.

If inflation undershoots it would open a “scenario that would be difficult for monetary policy to counteract and should therefore be avoided”, he said.

Keep reading...Show less