ECB’s Panetta: ‘Inflation Is Falling Faster Than Expected’

29 February 2024

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Governing Council member Fabio Panetta on Thursday said that the disinflation process had exceeded predictions.

Speaking during the G20 meetings in São Paulo, Brazil, Panetta, who heads the Banca d’Italia said, ‘Inflation is falling faster than expected.’

The ECB’s inflation target had not yet been reached, he said, adding that from a political perspective, reducing interest rates could contribute to economic growth.

‘[P]olitically, I’d like to say that a cut in rates could help boost growth, which is low across Europe — I think I’m not the only one who shares this view’, he said.