‘I Don’t Think We Are Very Far Off’ End of ECB Rate Hikes, Visco Says
13 July 2023
By Xavier D’Arcy – FRANKFURT (Econostream) – The European Central Bank is not far from the end of its rate hike cycle, ECB Governing Council member Ignazio Visco said on Thursday.
In an interview with Italian news channel Sky TG24, Visco, who heads the Bank of Italy, said that ‘once we have reached the correct level of interest rates, we need to maintain it for a while, and I don't think we are very far off.’
He added that the ECB would reach the terminal rate ‘definitely before the end of the year.’
‘To return to stable prices, around 2%, it is appropriate to adopt a restrictive approach. And we will maintain this restriction until there is a return to price stability. The effects of monetary policy are seen over time. We need to be patient and cautious’, he told viewers.