Ignazio Visco is Governor of the Bank of Italy and thus a European Central Bank Governing Council member.
He spoke over the weekend in front of Italy’s Assiom-Forex financial markets association.:
- “The policy tightening can now continue with the due caution, carefully assessing the implications for the economy and inflation prospects of the measures that have already been adopted”
- said that unwarranted excess tightening would have “serious implications” for economic activity and financial stability
- said short-term inflation expectations have dropped sharply and longer-term ones remain under control
Info via Reuters.
Huh, Visco’s jawboning tilting a little less hawkish after the 50bp rate last week: