The outlook for the euro zone economy remains fragile, a top European Central Bank policymaker said on Tuesday. ECB Governing Council member and Bank of Italy Governor Fabio Panetta made the comments at a research conference in Rome on the challenges for monetary policy transmission.
Economic Uncertainty
Panetta said the world has entered what he called a ‘Great Reconfiguration’, with deep global shifts occurring. He noted that the outlook remains fragile, with upside risks to inflation coexisting with downside risks to growth.
Panetta emphasized the need for constant monitoring of geopolitical developments, energy markets, supply chains, wages, and inflation expectations. He also stressed that monetary policy should avoid committing to a predetermined path.
The latest energy shock occurred on the backdrop of a global transformation brought about by geopolitical fragmentation, artificial intelligence, digital finance, population ageing, and climate change, according to Panetta.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
