Central Banks

ECB Must Heed Contagion Risks and Credit Slowdown, Visco Says

  • He sees risk of doing too little on rates, also doing too much
  • Bank of Italy Governor speaks to Bloomberg Television
WATCH: Visco discusses inflation, monetary policy and risks to financial stability.Source: Bloomberg
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The European Central Bank should proceed cautiously with any future interest-rate hike as credit growth slows and financial-stability risks persist, Governing Council member Ignazio Visco said.

The Bank of Italy governor told Francine Lacqua on Bloomberg Television that policymakers should stick with their “meeting-by-meeting” approach as the impact of tightening until now seeps through into the economy.