Central Banks
ECB’s Panetta Plays Down High Services Inflation Concerns
- Interest rates can be lowered further gradually, official says
- Finance Minister says rate reduction pace should accelerate
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The European Central Bank shouldn’t be overly worried about stubborn services inflation and still-robust wage growth, Governing Council member Fabio Panetta said.
“Concerns are not unwarranted, but they need to be put into perspective, as services prices tend to move differently from those of goods,” the Bank of Italy governor said Tuesday.