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MNI BRIEF: Prudent ECB Policy Essential -BOI's Visco

(MNI) ROME
(MNI) Rome

Bank of Italy Governor says ECB should not threaten nascent recovery with imprudent policy moves.

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The European Central Bank should continue to conduct policy "with prudence”, guided by new data but without risking financial stability or the fragile economic recovery, Bank of Italy’s Governor Ignazio Visco said at an event in Rome Wednesday.

Visco insisted that the inflation's rise across the euro area was a result of a post-pandemic supply shock and the war in Ukraine, but stressed the importance of keeping second round effects under control in order to avoid a harder ECB tightening.

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The European Central Bank should continue to conduct policy "with prudence”, guided by new data but without risking financial stability or the fragile economic recovery, Bank of Italy’s Governor Ignazio Visco said at an event in Rome Wednesday.

Visco insisted that the inflation's rise across the euro area was a result of a post-pandemic supply shock and the war in Ukraine, but stressed the importance of keeping second round effects under control in order to avoid a harder ECB tightening.

Keep reading...Show less