MNI BRIEF:Not Enough Evidence For ECB To Anticipate Moves-​BOI

There is no reason currently to believe that the euro area won’t be able to return to the 2% inflation target in timely fashion, Bank of Italy Governor Ignazio Visco said Wednesday at an event hosted by the Italian banking association.

Lower energy prices now at pre-war levels should bring a stronger reduction of prices in coming months and future rates movements should be “calibrated with particular attention,” Visco said, as he noted policy now needed a balanced approach in line with the symmetric stance that came out from the ECB strategy review in 2021.

Visco said that prudence and patience was needed to value and anticipate the effects of monetary tightening, noting that higher borrowing costs could worsen financial conditions. The calibration of the duration of the monetary tightening, rather than excessively increasing its peak would have "the advantage of facilitating a more informed analysis of the effects of the actions taken so far," he said.