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ECB’s Panetta Says Monetary Policy Must Remain Flexible, Flags China Import Surge
European Central Bank Governing Council member Fabio Panetta on Saturday said euro area inflation is expected to stabilize around the 2% target over the medium term, while warning that both upside and downside risks remain significant. Panetta, who heads the Banca d'Italia, said in remarks at the 32nd ASSIOM FOREX Congress in Venice that Eurosystem staff projections foresee a period in which inflation is expected to remain slightly below the target before returning to around 2% over the medium term. Energy and geopolitics could still push inflation higher via commodity prices and supply chain fragmentation, while ... (full story)
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