Fabio Panetta, the Governor of the Bank of Italy, has urged the European Central Bank (ECB) to accelerate the process of cutting interest rates, citing targeted inflation levels and stagnant domestic demand.
Call for Rate Cuts
Fabio Panetta has initiated a call for accelerated rate cuts, suggesting that the ECB abandon its meeting-by-meeting policy and commit to more dynamic actions. He claims that current restrictive monetary conditions limit economic growth.
Eurozone Economic Conditions
Panetta noted that domestic demand within the Eurozone remains weak and that the current economic environment does not necessitate restrictive monetary policy. He also expressed concern about falling inflation levels below the target of 2%.
Opinions and Criticism
Panetta has consistently advocated for rate reductions. Recently, he again addressed ECB President Christine Lagarde, requesting consideration of further rate cuts. Earlier in September, Italy's Deputy Prime Minister Antonio Tajani criticized the European Central Bank for insufficient decisiveness in rate reductions.
Panetta continues to emphasize the need to review the current ECB monetary policy, asserting that a more neutral approach will ensure economic stability.
