ECB’s Panetta Says Battle Against Inflation Isn’t Yet Won

US tariffs mean caution needed on rate cuts - Panetta

Bank of Italy Governor Fabio Panetta said Monday that the arrival of US tariffs means that the European Central Bank will have to be very careful about making further interest-rate cuts. (ANSA)

ECB’s Panetta Says Battle Against Inflation Isn’t Yet Won

European Central Bank Governing Council member Fabio Panetta said the fight to tame inflation isn’t finished, warning that rising global uncertainty requires a careful approach to lowering interest rates.

She is one of the most powerful women in Europe. She heads the European Central Bank (ECB), drives the interest rate policy of the entire euro zone and significantly determines the financial path of millions of Europeans. But Christine Lagarde also wears a stain on her face: a court conviction for negligence in a controversial multi-million dollar issue.

President Christine Lagarde said that the European Central Bank cannot compromise against inflation, while the US administration’s trade policy creates uncertainty. Read

The European Central Bank has cut interest rates six times since last June.

Global uncertainty “remains high, fueled by persistent geopolitical and trade tensions.” This was stated by the Governor of the Bank of Italy, Fabio Panetta, during the report presented at the Annual Meeting of Participants, which approved the bank’s 2024 financial statements. “This context penalizes international trade and accentuates the fragmentation of the world economy, contributing to the slowdown in production activity. The European econo…