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MNI BRIEF:  Returning Inflation To 2% In 2025 Adequate - Visco

(MNI) London

The euro area's monetary policy stance should continue aiming at a gradual return of inflation towards the 2% target, in line with the current expected in the second half of 2025, Bank of Italy governor Ignazio Visco said in a speech on Wednesday.

Visco underlined “the importance of keeping the bar of monetary policy response”, although being aware there is still “undissipated uncertainty” regarding the inflation dynamics and behaviours that can lead to prolonged durations and effects.

The impact of recent hikes should be clearly seen in the following months, he said noting that now it was important to strike a balance between insufficient restrictions, which could lead to an entrenchment of inflationary dynamics, and “disproportionate tightening” that could depress the economy too much and have repercussions on financial stability.

MNI Rome Bureau | +34-672-478-840 |
MNI Rome Bureau | +34-672-478-840 |

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