Economy

ECB’s Panetta warns rate policy mustn’t push inflation too low

ROME (Reuters) – The European Central Bank must avoid the risk of cutting interest rates too slowly and lowering inflation excessively, Governing Council Member Fabio Panetta said on Thursday.

In a speech at a banking conference in Rome, Italy’s central bank governor said euro zone monetary conditions remain restrictive and need to be eased further.

“With the decline in inflation, we need to pay attention to the weakness of the real economy,” said Panetta, who is considered a monetary policy dove.

“In the absence of a firm recovery we would run the risk of pushing inflation well below target (and creating) a situation that monetary policy would struggle to counter, and which must be avoided.”

The ECB cut its key interest rate by 25 basis points to 3.25% this month – its third cut this year.

Policymakers are now debating how far interest rates may need to fall and how to signal their plans to investors.

This post appeared first on investing.com

You May Also Like

Editor's Pick

Sen. JD Vance (R-Ohio) and Minnesota Gov. Tim Walz (D) will face off Tuesday night at a CBS News vice-presidential debate in New York....

Latest News

A North Korean defector who escaped to the South more than a decade ago was detained after attempting to cross back into North Korea...

Economy

A U.N. human rights group confirmed Hamas’ leader in Lebanon, who was recently killed by Israeli strikes, was their employee.  Fateh Sherif was killed...

Investing

Astron (ASX:ATR) and Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) have completed the establishment of a joint venture to advance the Australia-based Donald rare earths and mineral sands...

Disclaimer: balanceandcharge.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 balanceandcharge.com

Exit mobile version