Risks to economic activity may increase – ECB’s Panetta

Downside risks to the economic activity in the euro area may be increasing, European Central Bank (ECB) Executive Board member Fabio Panetta (pictured center) asserted on Wednesday.

Delivering remarks at an event hosted by Sciences Po School of Management and Innovation and Fondation Robert Schuman in Paris, Panetta warned that a premature tightening of the monetary policy could lead to a “prolonged recession.”

In regard to inflation-related worries, he noted that, “for monetary policy today, patience is the most courageous form of action.”



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