Fabio Panetta, a member of the European Central Bank"s Governing Council and governor of the Bank of Italy, has expressed the need for a significant reduction in interest rates to support economic growth.
Panetta believes that the current monetary conditions are no longer necessary and suggests a shift towards a neutral monetary policy stance. He emphasizes the importance of normalizing monetary policy and suggests that an expansionary approach may be necessary to promote economic recovery.
This statement reflects concerns about the impact of high interest rates on the European economy and indicates a potential change in the ECB"s approach to monetary policy.