ECB Executive Board member Fabio Panetta said in a speech, “at present, the direction of monetary policy is clear”. And, a “further policy adjustment is warranted in order to keep inflation expectations anchored and stave off second-round effects.”
However, “the calibration of our stance should not rely on a one-sided view of risks − especially as we continue normalising our monetary policy in a highly uncertain economic environment,” he added. “And it should remain focused on medium-term inflationary developments.”
“Our policy stance must remain evidence-based and adapt to changes in the medium-term inflation outlook, avoiding an excessive focus on short-run developments and fully taking into account the risks emanating from the domestic and global economic and financial environment,” he emphasized.
“This approach will allow us to successfully navigate the risks we face while avoiding the danger of tripping over unintended effects.”
