European Central Bank Executive Board member Fabio Panetta said on Wednesday that inflation in the euro area is likely to remain below the 2% target for an extended period against a persistently weak economy. The official noted that U.S. trade policy and the Iran-Israel conflict pose substantial and difficult-to-quantify risks.
Panetta also emphasised that the ECB will maintain a flexible approach, with all options open, and continue to take policy decisions on a meeting-by-meeting basis without pre-committing to a specific path.