Oil prices extend losses as traders downplay Russia sanction risks
Investing.com -- The European Central Bank (ECB) should continue to ease its monetary policy if economic growth faces increased threats from international trade tensions and geopolitical instability that strengthen disinflationary trends, ECB governing council member Fabio Panetta said Friday.
Speaking at an annual meeting of Italy’s banking association, Panetta noted that the current outlook for euro zone inflation, which projects 1.4% in early 2026 with a return to the 2% target the following year, remains highly uncertain.
"The key issue now is whether the current level of interest rates is adequate to keep inflation close to target, avoiding persistent deviations in either direction," Panetta said.
Panetta emphasized that "if downward risks to growth were to strengthen disinflationary trends, it will be appropriate to continue with the policy easing."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.