22-February-2024
Economy News
 
ECB needs to start cutting interest rates soon, says Fabio Panetta
12-Feb-2024

The European Central Bank will soon need to start cutting interest rates, according to Governing Council member Fabio Panetta. “Macroeconomic conditions suggest that disinflation is at an advanced stage, and progress toward the 2% target continues to be rapid,” he said on Saturday at the annual Assiom Forex event in Genoa. “The time for reversal of the monetary policy stance is fast approaching.” ECB officials are preparing to loosen policy this year — probably from April or June — with investors leaning toward the earlier of the two. The outcome will hinge on inflation, which has plunged over recent months but isn’t expected to meet the 2% target again until next year. “There has been no upward de-anchoring of inflation expectations — if anything downside risks are emerging,” Panetta said. “Concerns about the hypothesis of persistently high core inflation have also proven groundless.”

News Source:- https://www.business-standard.com/world-news/ecb-needs-to-start-cutting-interest-rates-soon-says-fabio-panetta-124021000926_1.html