MNI BRIEF: Loan Dynamics Still Feel Tightening - Panetta

Euro area credit and loans dynamics are still feeling the impact of monetary tightening from previous years and also from the current weakness in this economic cycle, Bank of Italy Governor Fabio Panetta said during the bank’s budget presentation Monday.

Panetta also noted that the fight to bring inflation to 2% is not finished yet, adding that future monetary policy decisions should balance between economic weakness and geopolitical tensions that are slowing consumption and investment and uncertainty around trade policy that imposes caution on the easing path. (see MNI SOURCES: ECB Still Set For 2% Deposit Rate As Yields Surge )