ECB board nominee Panetta: Inflation outlook seems to fall short of ECB target

Author: Justin Low | Category: Central Banks

Fabio Panetta is the man nominated to succeed Benoit Coeure once the latter's term comes to an end in 31 December 2019

  • Calls for accommodataive monetary policy
  • Incoming information suggests growth slowdown is more protracted than expected
  • September policy package will provide necessary support to the economy, inflation
  • Different views in the ECB is a sign of a frank, constructive debate
  • Evidence indicates that effect of NIRP on the economy has been positive
  • Risk of side effects of NIRP remains
  • ECB must be alert to possible unintended consequences of its policies towards the stability of the financial system
I guess we all know which side of the fence he is on and he will do well in succeeding Coeure in that regard. Meanwhile, we are also hearing from another ECB board nominee, Isabel Schnabel (who will replace Sabine Lautenschlaeger):

  • Accommodative monetary policy continues to be needed
  • September policy package can be justified by current inflation data
  • As well as inflation outlook over the medium-term

This all basically sounds like a job interview but we have known for quite a while that Schnabel is a bit more open relative to her German counterparts, though I reckon she may not entirely be a full-fledged conformist in her true nature.

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