Fabio Panetta, a member of the ECB, emphasizes the need to carefully consider the risk of monetary policy becoming too tight. He suggests that timely and small rate cuts could address weak demand without incurring costs, while large cuts may pose credibility issues. Panetta also warns that hesitations in adjusting rates could negatively impact investment and productivity. Additionally, he mentions that the ECB is likely to maintain a restrictive stance well into 2025 to avoid the necessity of returning to ultra-low interest rates.
Fabio Panetta warns that a return to ultra-low interest rates may be required if ECB cuts aren’t made soon https://t.co/umz9J6WLxK
Panetta warns ECB cuts are needed to avoid ultra-low rates later https://t.co/BIySrnECFE https://t.co/GyBl9YKAqi
ECB's Panetta: Must Weigh Risk Of MonPol Becoming Too Tight - Timely, Small Cuts Would Counter Weak Demand And ‘Could Be Paused At No Cost’ - Large Cuts Could Create A Credibility Issue - Hesitations In Adjusting Rates Would Hurt Investment, Productivity
ECB'S PANETTA: THE ECB LIKELY TO REMAIN RESTRICTIVE WELL INTO 2025.
ECB'S PANETTA:WE MUST WEIGH RISK OF MONETARY POLICY BECOMING TOO TIGHT
ECB'S PANETTA: HESITATIONS IN ADJUSTING RATES WOULD HURT INVESTMENT AND PRODUCTIVITY.
ECB'S PANETTA: LARGE RATE CUTS COULD CREATE A CREDIBILITY ISSUE.
ECB'S PANETTA: WE MUST WEIGH RISK OF MONETARY POLICY BECOMING TOO TIGHT.
ECB'S PANETTA: TIMELY AND SMALL RATE CUTS WOULD COUNTER WEAK DEMAND AND COULD BE PAUSED AT NO COST.