11/27/2020, 7:39 AM (Source: TeleTrader)
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Tool recalibration needed in Dec. - ECB's Panetta

European Central Bank (ECB) Executive Board Member Fabio Panetta said on Friday that the ECB Governing Council reached a consensus that the monetary policy tools will need a recalibration next month.

Speaking in an interview for Portugal-based Expresso newspaper, he specified that the strong measures the ECB has taken so far were carried out to "allow financial markets and ultimately the economy to withstand" the coronavirus pandemic-caused impact, "thereby supporting price stability." Also, the central bank calibrated "its stance to reflect our commitment to bring inflation back to our aim... without undue delay," Panetta pointed out.

He went on to emphasize that the ECB still has the "firepower" to address the second wave of the pandemic, but also stressed that fiscal policy is essential at this point to transmit "monetary policy impulses." The Italian economist also warned against complacency in 2021 as the recovery process could take a long time.

Breaking the News / MS