Visco (ECB) advocates flexibility in the withdrawal of monetary support | Photo credits: World Economic Forum
PARMA, Italy, Feb 12 (Reuters) – The European Central Bank (ECB) will adapt its monetary policy flexibly by monitoring not only inflation but also the risk of disruption in financing conditions in eurozone countries, a declared Saturday Ignazio Visco, one of the members of the Board of Governors of the institution.
Attending the annual ASSIOM-FOREX conference in Parma, the governor of the Bank of Italy added that the impact of soaring energy prices should gradually dissipate in 2023 provided that inflation expectations remain well-established and in the absence of a price-wage spiral.
He said inflationary pressures had proved more lasting than initially anticipated and near-term risks of higher consumer prices had increased. But he added that so was the risk of a downturn in economic activity.
“The March Council meeting will need to carefully consider and discuss these developments, as well as their possible consequences,” he said.
Ignazio Visco added that it was important for the ECB to gradually withdraw its support measures.
(Report Francesca Landini and Valentina Za, French version Marc Angrand)