ECB shouldn't embark on series of rate hikes like in 2022 - BoI's Panetta

The European Central Bank (ECB) should

not respond to the current inflationary pressures with a series

of interest-rate hikes like it did after Russia's invasion of

Ukraine in 2022, Bank of Italy Governor Fabio Panetta said on

Tuesday.

"It would be a mistake," Panetta told the ChaMp conference.

"We are not in the same situation as in 2022. Demand is weaker

and real interest rates are higher".

The outlook for the eurozone remains "fragile," he added.

"The ECB's decision to raise rates in June was made based on a

series of scenarios and it took into account a decline in energy

prices following the negotiations between the U.S. and Iran," he

continued.

"However, upside risks to inflation continue to coexist with

downside risks to growth, and this requires constant

monitoring".

He said the monetary policy should not follow "a predetermined

path".

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