Bank of Italy chief calls for more interest-rate cuts

We must pay attention to sluggishness of real economy - Panetta

By: ansa.it

Oct 31 2024
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Bank of Italy chief calls for

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".