Cutting of nearest rates. In the euro area “sThe conditions are now being met to start monetary easing” by the ECB. This was stated yesterday by the governor of the Bank of Italy, Fabio Panetta, in his report to the Shareholders' Meeting on the institution's 2023 budget, launching a clear call for a possible cut.
ECB scissors closer
“There global economy continues to be weak. The stagnation of international trade and the uncertainty raised by geopolitical tensions weigh on economic activity,” he continued. “The restrictive monetary policy of the European Central Bank is squeezing demand and contributing, together with the fall in energy prices, to the rapid decrease in inflation. THE risks to stability prices have been reduced – Panetta further observed – and the conditions to initiate monetary easing.”
Panetta's words
The Bank of Italy expects to return to gross profit, ptherefore before the coverage through the general risks fund accumulated in recent years (which amounts to over 35 billion ed.), in 2025, Panetta said again during the meeting of participants according to which the estimate is “based on current monetary policy decisions and expectations on the evolution of rates”.
Panetta also underlined the need to “continue and complete the rationalizationand structures and processes, maintaining the organizational structure aligned with the evolution of institutional activities and the search for efficiency”. “When I took office, I addressed a message to the staff of the Bank of Italy in which I hoped for openness to change and innovation – he recalled – without, however, dispersing the values that have supported the authoritativeness and prestige of the Institute. Combining continuity with innovation is the objective that inspires the organizational design, working methods and operating procedures. Opportunities must be seized offered by digitalisation”.
It is necessary “special attention to the conscious use of financial resources, to constantly keep cost dynamics under control”. Furthermore, according to Panetta, “taking advantage of the experience acquired with the hybrid work model, which involves a lower need for space in the offices, a program for reallocation of the structures has been defined which will produce a significant drop in real estate costs”.
Digital Euro, where are we at?
Finally, to actively contribute to the Eurosystem project sn the digital euro, an innovative, secure means of payment, accessible free of charge to all citizens” at the Bank of Italy “an organizational solution is being adopted which, through the competition of all the necessary skills, will be able to contribute to carrying out the required activities in an agile and flexible way”, concluded Panetta.
