The Strategist

ECB warns of excessive rate hikes risk

01/24/2023 - 06:12

Ignazio Visco of ECB warned against excessive rate increases.

Ignazio Visco, a member of the Governing Council of the European Central Bank, stated on Monday that he did not agree that it would be preferable for the bank to tighten monetary policy excessively rather than inadequately.

In a speech in Rome, Bank of Italy Governor Visco, who is often seen as a supporter of soft policy on the ECB's board, stated that, in his opinion, raising rates too rapidly and too slowly carry equal dangers.

“I'm not sure that risking too much tightening today is preferable to going too slowly,” he remarked.