The member of the Executive Board of the European Central Bank (ECB), Fabio Panetta, said on Tuesday that must resist the temptation of less accommodation of monetary policy, as reported by Reuters.
Additional comments:
“We’ll have to keep going until we see inflation sustainably reach 2%, in an environment of robust growth and increased employment “.
“Policy support will have to be sustained well beyond the end of the pandemic“.
“The risks of providing too little policy support still far outweigh the risks of providing too much.”
“By keeping nominal returns low for longer, we can provide a solid anchor to preserve accommodative financing conditions“.
“We must not hesitate to increase the volume of purchases and spend the entire amount of the PEPP or more if necessary. “
“The rise in inflation is temporary“.
“The short-term growth outlook is also skewed to the downside.”
“Over time, a firm commitment to steer the euro area yield curve can allow us to slow down our purchases“.
“The rise in the nominal GDP-weighted yield curve that we have been seeing is unwelcome and must be resisted.”
“Lower real yields would provide a welcome additional stimulus, given how far we are from full capacity and the moderate level of current and expected inflation.”
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