The next decisions of ECB’s monetary policy “will have to balance two factors”: the “weakness of the European economy” and “geopolitical tensions“That” are curbing consumption and investments, helping to contain inflation “. And then” the increase in uncertainty, mainly due to the announcements, sometimes contradictory, on Commercial policies of the United States “ that “caution imposes on the path of decreasing official rates”.
Governor Fabio Panetta, in the report for the ordinary assembly of the Banca d’Italia participants, invites caution to the path taken by the central banks on the cutting of the rates Given the commercial tensions underway arising from the duties policy launched by the United States, which adds to the conflicts in progress by Ukraine to the Middle East.
Global uncertainty, notes Panetta, “remains high, fueled by persistent geopolitical and commercial tensions”. This context, he underlines, “International exchanges penalize And the fragmentation of the world economy accentuates, contributing to the slowdown of the production activity “.
Here then by looking to the future, warns the governor of Bankitalia the fight against inflation “It cannot yet be completed. It will be essential to carefully monitor all the factors that could hinder the return to the goal of 2 percent”.
In the two meetings of the 2025 board the ECB cut 25 basic points rates in both cases. After the session of 6 March, the president of the ECB Christine Lagarde had said that the next monetary policy decisions, especially in the current scenario of growing global uncertainty, will be taken “meeting after meeting”, without following any predetermined path and if necessary you could also arrive A break in the cuts.