Ignazio Visco is Governor of the Bank of Italy and thus a European Central Bank Governing Council member.
He spoke over the weekend in front of Italy's Assiom-Forex financial markets association.:
- "The policy tightening can now continue with the due caution, carefully assessing the implications for the economy and inflation prospects of the measures that have already been adopted"
- said that unwarranted excess tightening would have "serious implications" for economic activity and financial stability
- said short-term inflation expectations have dropped sharply and longer-term ones remain under control
Info via Reuters.
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Huh, Visco's jawboning tilting a little less hawkish after the 50bp rate last week:
- ECB sources: See at least two more rate hikes
- ECBs Lagarde:We intend to raise rates by 50 BPs @ the next meeting & then monitor the path
- ECB raises key rates by 50 bps in February monetary policy meeting, as expected
