MILAN (Reuters) – The European Central Bank (ECB) could bring inflation back to the 2% target by keeping interest rates at an appropriate level for a while rather than raising them further, it said on Wednesday. Governor of the Central Bank of Italy.
Addressing the general assembly of the Italian Banking Association (ABI), Ignazio Visco, who sits on the board of governors of the European Central Bank (ECB), said rates had reached a restrictive level.
The central bank has raised rates at each of its meetings for a year, bringing its deposit rate to 3.5%, and has promised other tightening measures to try to curb inflation, again three times above its target.
Ignazio Visco, whose mandate at the head of the Bank of Italy ends at the end of October, is considered a “dove” within the ECB.
“I don’t understand and continue to disagree with comments that have been made recently that would indicate that the risk of a bigger – rather than a smaller – tightening is preferable,” he said. said.
“While it is necessary to remain very vigilant and stay the course, it is also necessary to show great caution and patience to assess and anticipate the impact of the monetary tightening implemented since last year” , continued Ignazio Visco.
The International Monetary Fund estimated at the beginning of the month that the ECB should continue to raise its rates to bring down inflation.
Governing Council member Bostjan Vasle said last week, along with other central bankers, that the price level in the euro zone may require rate hikes beyond July.
(Valentina Za, Laetitia Volga, edited by Kate Entringer)
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