ECB's Panetta says EZ inflation is currently around 3% and expected to remain above that level until early 2027
- Risks linked to higher energy prices, tighter financial conditions and persistent geopolitical uncertainty appear to be only partially incorporated into market evaluations.
- Several indicators suggest the rise in equity markets seen after the Iran conflict is due to an underestimation of risks.
- ECB's goal is to keep inflation expectations firmly anchored, limiting indirect and second-round effects of shocks.
- Prolonged hostilities in the Middle East, coupled with renewed pressure on energy markets, could lead Italian banks to be more cautious and tighten credit standards.
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