The "persistence" for a longer period of ECB rates "is as important as" its level. This is what board member and future governor of the Bank of Italy Fabio Panetta said at an event at Bocconi, according to which "it is too early" now to know whether or not there will be a new ECB rate hike in September.
For Panetta, "monetary policy can operate not only by raising rates but also by keeping them at current levels for a longer period." Such a policy, he explains, which "incorporates persistence", allows greater flexibility "in adjusting to data to complete the task of curbing inflation in Europe".
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