European Central
European Central Bank member Fabio Panetta said on Wednesday, on the sidelines of a speech at the European Central Bank conference in Frankfurt, that the ECB’s monetary policy must be dependent on economic data and adaptable in order to achieve the 2% inflation target, as noted by the ECB policymaker. For the following axes:
- The ECB should avoid pre-committing to any specific policy path.
- The medium-term inflation outlook for the Eurozone remains firmly on our target.
- Current data indicates that inflation will gradually decrease to around 3% by the end of 2023 and around 2% by mid-2025.
- It may take some time before we see fluctuations in economic activity and calm prices, to reach a new, stable equilibrium level.
- The ECB needs to adapt its policies to the effects of shocks, geopolitical developments, and the risk of financial escalations.
It should be noted that the member of the European Central Bank, Matins Kazak, explained earlier that despite the increasing uncertainty in the financial markets at the present time, European banks enjoy good capital and high liquidity positions, which makes them in a strong position, especially with the support of the European Central Bank. And his pre-intervention readiness.
He also stated that the financial resources in Europe are very abundant, adding that there is no reason to compare the current situation of the banking sector with the prevailing situation in 2008, to confirm that we cannot say that the European Central Bank has finished raising interest rates.
European Central Governor: We are not committed to raising interest rates more, but we are not done yet!
