ECB's Visco Sees Rate Hike Pause Before Year-end
(RTTNews) - The European Central Bank will retain the tighter monetary policy stance until inflation returns to its 2 percent target and that the peak rate is not far, ECB policymaker and Bank of Italy Governor Ignazio Visco said Thursday.
"We are not far from a pause in rate hikes before the end of the year," Visco said in an interview to the Italian broadcaster Sky TG24.
The ECB must be careful and cautious in maintaining the restrictive policy stance until it achieves price stability, Visco said.
The policymaker sought patience in the process and reiterated that the effect of monetary policy can be seen over time. The ECB must be "prudent and patient" in the fight against inflation, Visco said.
On Wednesday, ECB Executive Board Member and Chief Economist Philip Lane said the Eurozone economy will experience the full force of the unprecedented policy tightening that the ECB undertook in the face of runaway inflation, only in the next few years. The ECB has raised rates by a cumulative 350 basis points in the latest tightening cycle with a hike in every policy session since July last year.
ECB President Christine Lagarde has signaled another rate hike in July as policymakers continue to view euro area inflation as too high.
Eurozone Economic Confidence Weakens In August
German GfK Consumer Confidence To Fall Further
French Consumer Sentiment Weakest Since 2023
German Ifo Business Confidence Strongest Since 2024
Eurozone Consumer Confidence Weakens More Than Expected In August
Eurozone Private Sector Expands At Fastest Pace In 15 Months
Eurozone Trade Surplus Declines Sharply In June
