Posted 2/10/2024, 10:43:12 AM
ECB's Panetta Calls for Swift Rate Cuts as Disinflation Accelerates, Sees Italy's Economy and Banks Improving but Facing Risks
- ECB policymaker Panetta says interest rate cuts are needed soon as disinflation is advancing rapidly
- Panetta believes upside inflation risks from wages are exaggerated and downside risks are emerging
- Delaying policy easing could increase volatility in markets and economic activity
- Italy's fiscal deficit and debt as a percentage of GDP have fallen, but debt should remain stable
- Italian banks have improved liquidity, profitability and balance sheets, but favorable conditions may not last
