ECB’s Panetta: We should normalise our monetary policy gradually

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The inflation path is starting from a much higher point but the medium-term inflation outlook is characterized by high uncertainty.

We should normalize our monetary policy and choose a mix of instruments that is.

We should normalize our monetary policy gradually.

Addressing fragmentation risks is central to the normal conduct of monetary policy in the euro area.

Normal does not mean neutral.

We should avoid the risk of a “normalization tantrum”.

The natural rate of interest has declined significantly.