Bank of Italy Governor Fabio Panetta
on Thursday called on the European Central Bank (ECB) to deliver
more interest-rate cuts, saying the economy needs them.
Speaking at an event for World Savings Day, Panetta said that,
while the ECB's tightening of monetary policy following the
energy-price shock triggered by Russian's invasion of Ukraine
had succeeded in reducing inflation, "'monetary conditions
remain tight, and require further reductions.
"Attention must now be paid to the sluggishness of the real
economy," he continued.
He said that, if there is no sustained recovery, there is a risk
of pushing inflation well below the 2% target.
He said this would lead to a situation that "monetary policy
would struggle to counter and which must be avoided".
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