ECB’s Panetta States Case for Rate Hike Without Pre-Set Path

ECB Governing Council member Fabio Panetta acknowledged there is a case for an interest-rate hike, but urged colleagues not to signal further tightening beyond that move. The remarks are a modestly hawkish policy signal, with limited immediate market impact absent new guidance on the size or timing of hikes.

Analysis

ECB Governing Council member Fabio Panetta acknowledged there is a case for an interest-rate hike, but urged colleagues not to signal further tightening beyond that move. The remarks are a modestly hawkish policy signal, with limited immediate market impact absent new guidance on the size or timing of hikes.