Central Banks
ECB’s Panetta Warns Cuts Needed to Avoid Ultra-Low Rates Later
- Italian central-bank head gives dinner speech in Frankfurt
- Officials are preparing to lower interest rates in June
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European Central Bank Governing Council member Fabio Panetta warned that a return to ultra-low interest rates may be required if cuts aren’t made soon.
The Italian central-bank chief said the euro-zone economy needs fresh impetus from monetary-policy easing, which would also temper the risk of undershooting the 2% inflation target. A lack of loosening by the Federal Reserve should pose no obstacle to the ECB, he said.