ECB Board nominee Panetta calls for an accommodative monetary policy

Inflation outlook seems to fall short of the European Central Bank's (ECB) Governing Council’s inflation aim of below but close to 2%, noted Fabio Panetta, Italy's nominee to the board of the ECB, and said an accommodative monetary policy was still warranted.

"ECB must be constantly alert to the possible unintended consequences of its policies for the stability of the financial system," Panetta said. "Incoming information, both hard data and soft information, suggests that the slowdown in growth is proving to be more protracted than expected."

As of writing, the EUR/USD pair was last seen trading at 1.0995, down 0.1% on the day.

"Monetary policy support is needed to ensure that financing conditions remain favourable," Panetta concluded.