Reported about 1 year ago
European Central Bank's Fabio Panetta reassured that the bank should not be overly worried about persistent services inflation and robust wage growth, as services prices behave differently from goods. Despite some concerns among officials, Panetta emphasized gradual rate cuts are still feasible based on recent data and outlook. He highlighted that the impact of previous rate hikes will continue to influence inflation into 2024, allowing for a cautious reduction in borrowing costs to align with ECB's expectations.
Source: YAHOO