prolonged rate hikes, I don’t appreciate Corriere.it

Prolonged rate hikes? I don’t appreciate

Therefore, I do not appreciate statements by my colleagues regarding future and prolonged rate increases, the governor reiterated, in his greeting to the XIV Maeci-Bank of Italy conference. While monetary policy has so far been successful in stabilizing expectations, the severe geopolitical situation makes it very difficult to predict future macroeconomic developments. Monetary policy will therefore have to continue to move with prudence, being guided by the data that will become available, so as to bring inflation back to the 2% objective over the medium term, without jeopardizing financial stability and minimizing the effects negative effects on the still fragile recovery. A vision that Visco accompanies with a quote: I don’t know, we don’t know enough. For this I can only say, recalling Eugenio Montale, “what we are not, what we don’t want”, in this case we don’t want high and persistent inflation. In short, the number one of Via Nazionale returns to reiterate that prudence is needed in the ECB’s monetary policy choices and that rate hikes must take place without jeopardizing financial stability. The scenario sketched out by Visco is characterized by growing inflation. We live in a period of acute uncertainty. Global economic activity continues to go through a phase of weakness, while price growth has returned to levels we haven’t seen in advanced countries for forty years, he summarizes.