ECB's Visco: Getting right balance in tightening 'tough'

EPA-EFE/RICCARDO ANTIMIANI

European Central Bank Governing Council member Ignazio Visco said on Wednesday during the Italian central bank's annual general meeting that achieving the right balance between "insufficient" and "disproportionate" monetary policy tightening is a "tough challenge."

The ECB policymaker explained that "disproportionate tightening" could lead to "overly acute repercussions" for economic activity. In addition, such steps could also have "negative effects on financial stability and, ultimately, on medium-term price stability," he stated.

"After bringing the reference rates to restrictive levels, we now have to proceed with the right degree of graduality," Visco emphasized.

Baha Breaking News (BBN) / AY