Scroll Top
ecbs-panetta-said-that-time-for-an-interest-rate-cut-is-fast-approaching

ECB’s Panetta said that time for an interest rate cut is “fast approaching”

Governor of the Bank of Italy and hence European Central Bank Governing Council member Fabio Panetta spoke on Saturday, saying that “the time for a reversal of the monetary policy stance is fast approaching.”

The ECB have already stopped raising rates, the last was in September when the Bank raised its interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility to 4.50%, 4.75% and 4.00% respectively.

More:

  • “What should be discussed now are the conditions to start monetary easing, while avoiding risks to price stability and unnecessary damage to the real economy”
  • says the policy board will “need to consider the pros and cons of cutting interest rates quickly and gradually, as opposed to later and more aggressively, which could increase volatility in financial markets and economic activity”
  • “Any speculation on the exact timing of monetary easing would be a sterile exercise”
  • inflation is falling as quickly as it rose
  • strong growth in nominal wages are being offset by declines in other costs to firms
  • doesn’t see a high risk of inflation impacts from Red Sea issues, but acknowledged the risk of further escalation in the region

Source link

Recent News
Related News
About Cookies
When you visit our website, it may store information through your browser from specific services, usually in form of cookies to impact your experience on our website and the services we offer.