Fabio Panetta, member of the Governing Council of the European Central Bank (ECB)declared on Saturday that the time is near for the central bank to cut interest rates, and that taking timely and gradual measures could help reduce the resulting volatility in financial markets and the economy.
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“The time for a reversal of the stance of monetary policy is rapidly approaching“
“We must consider the pros and cons of cutting interest rates quickly and gradually, rather than doing so later and more aggressively, which could increase volatility in financial markets and economic activity.”
“What needs to be discussed now are the conditions for initiating monetary easing while avoiding risks to price stability and unnecessary damage to the real economy.”
“Any speculation about the exact timing of monetary easing would be a fruitless exercise”
“Inflation is falling as fast as it rose”
“Low demand and high inventories reduce the likelihood that higher transportation costs will be passed through to prices to a significant extent.”
Market reaction
At the time of writing, the EUR/USD pair is trading higher at 1.0793, up 0.06% on the day.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
