Smaller ECB hikes wouldn't mean lower terminal rate: Panetta

LONDON, Feb 16 (Reuters) - Smaller rate hikes by the European Central Bank in the months ahead would not mean that rates peak at a lower level, as the need for tighter policy is clear, ECB board member Fabio Panetta said on Thursday.

Interest rates are now getting into restrictive territory so fast rate hikes would be unwise, unless policymakers were sure of the destination, Panetta said at an event in London.

The ECB all but promised a 50 basis point rate hike for March when it met earlier this month, even as Panetta called for smaller steps and said the ECB should not "unconditionally" pre-commit to future policy moves.
(Reporting by Marc Jones; writing by Balazs Koranyi; Editing by Raissa Kasolowsky)

Reuters Messaging: balazs.koranyi.thomsonreuters.com@reuters.net))

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Smaller ECB hikes wouldn't mean lower terminal rate: Panetta