ECB/Panetta: "I Don't Believe We Must Stop at the Neutral Rate for Interest Rate Cuts"

ECB Governing Council member and Bank of Italy Governor Fabio Panetta stated that the European Central Bank may need to lower interest rates sufficiently to stimulate the economy. Panetta emphasized that the interest rate is still "far from" the neutral rate, and policymakers may have to go further if inflation poses a threat of falling below the 2% target. Speaking at the International Monetary Fund's annual meetings in Washington, Panetta said, "Given the weakness of the economy, I don't think we have to stop at the neutral rate."