LONDON, Feb 16 (Reuters) - The European Central bank
should start raising its interest rates in smaller increments
and avoid committing to future moves as inflation in the euro
zone falls and past rate hikes work their way through the
economy, ECB board member Fabio Panetta said on Thursday.
"With rates now moving into restrictive territory, it is the
extent and duration of monetary policy restriction that
matters," Panetta told an event in London.
"By smoothing our policy rate hikes – that is, moving in
small steps – we can ensure that we calibrate both elements more
precisely in the light of the incoming information and our
reaction function."
The Italian member of the ECB's board also said headline
inflation in the euro zone may fall below 3% by the end of the
year if the drop in energy prices is sustained.
(Reporting By Marc Jones; Writing by Francesco Canepa in
Frankfurt; editing by Balazs Koranyi)
004906975651247; Reuters Messaging:
francesco.canepa.thomsonreuters.com@reuters.net))
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.