Central Banks
Panetta Says ECB Must Move to Neutral Rates to Aid Growth
- Restrictive policy isn’t needed, Bank of Italy governor says
- Officials are widely expected to cut rates again in December
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The European Central Bank should cut interest rates far enough to ensure they are no longer constraining economic growth, Governing Council member Fabio Panetta said.
“Restrictive monetary conditions are no longer necessary,” Panetta, the Bank of Italy governor, said on Tuesday in Milan. “We need to normalize our monetary-policy stance and move to neutral – or even expansionary territory, if necessary.”