Italian ECB Governing Council member Fabio Panetta emphasized the need for further easing of restrictive monetary conditions in the Eurozone, citing concerns about economic softness amid declining inflation.
Panetta highlighted in a speech today that as inflation moderates, it’s essential to consider “the weakness of the real economy” and avoid deepening the downturn.
“In the absence of a firm recovery we would run the risk of pushing inflation well below target, a situation that monetary policy would struggle to counter, and which must be avoided,” he added.
