2024-03-28 22:01:19
The European Central Bank (ECB) “must be prepared to quickly reverse its restrictive monetary policy stance” if wage growth in the eurozone continues to slow as expected, Piero Cipollone said in his first public appearance as a member of the ECB’s leadership, Day reports. Az with reference to Interfax.
Cipollone joined the ECB’s governing board last November as Italy’s representative. He replaced Fabio Panetta on the board, who left to head the Italian Central Bank.
According to Cipollone, the rate of wage growth in the eurozone has already passed its peak and is now slowing down. However, he added that too slow wage growth will reduce the purchasing power of Europeans, which “will put downward pressure on productivity growth and employment.”
The economist also pointed to too slow growth of the European economy and a drop in inflation in February to 2.6%, which is the minimum in more than two years. In such conditions, the relative tightness of the ECB’s policy increases, which “strengthens the case for adjusting our rates.”
Such statements make Cipollone one of the most dovish members of the ECB leadership, writes the Financial Times.