ECB'S PANETTA: THE ECB'S BALANCE SHEET REDUCTION MUSTN'T INTERFERE WITH THE MONETARY POLICY STANCE OR CREATE A LACK OF LIQUIDITY IN THE FINANCIAL SYSTEM.
ECB'S PANETTA: IN ITS MONETARY EASING THE ECB WILL TAKE ACCOUNT FEDERAL RESERVE'S MOVES, BUT NOT BE BOUND BY THEM.
ECB'S PANETTA: WE MUST AVOID MONETARY POLICY BECOMING TOO RESTRICTIVE, WHICH COULD PUSH INFLATION BELOW THE ECB'S SYMMETRICAL TARGET.
European Central Bank (ECB) Executive Board Member Fabio Panetta has indicated that monetary easing can be expected over the coming months if forecasts are confirmed by data. Panetta also stated that Euro zone inflation is expected to continue to ease in the next few quarters. He emphasized the need to avoid monetary policy becoming too restrictive, which could push inflation below the ECB's symmetrical target. Despite potential rate cuts, Panetta noted that monetary policy would remain restrictive even after several rate cuts. The ECB will take into account the Federal Reserve's moves but will not be bound by them in its monetary easing strategy.
