ECB executive board member Panetta said at a Rome meeting that even if a durable
US‑Iran settlement lowers energy prices below the ECB’s June forecast, the
economic outlook remains fragile. He warned upside inflation risks and downside
growth risks continue to coexist, calling for continuous monitoring of
geopolitics, energy markets, supply chains, wages and inflation expectations and
saying monetary policy should avoid committing to a preset path. Panetta added
the current conflict is one of a series of increasingly frequent supply shocks
that could alter policymakers’ future responses to secure 2% inflation over the
medium term.
