Italian banker urges ECB to adopt expansionary policies due to low inflation risks and stagnant demand.

Italian banker Fabio Panetta urged the European Central Bank (ECB) to shift away from restrictive monetary policies, citing stagnant domestic demand and the risk of inflation falling below target. Speaking at Bocconi University, Panetta called for a more neutral or expansionary policy stance and clearer guidance on future interest rates to support economic growth. Investors anticipate more rate cuts, potentially to 2%.

November 19, 2024
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