ECB’s Visco: Nominal rates to remain low until inflation back in line with ECB price target

ECB governing council member and Bank of Italy head Ignazio Visco was on the wires last hour, commenting on the Italian banking crisis. While he also touched upon briefly on the ECB’s monetary policy.

Key Quotes:

Monti Del Paschi rescue plan is challenging but conditions are there for it to succeed

Banks must continue to reduce branches

It may be necessary to consider special measures beside current welfare support to cut staff

Seriousness of economic crisis Italy experienced can justify state support for banks

Expects government to continue to stick to commitment to reduce debt burden over output

Nominal rates to remain low until Eurozone inflation is back in line with our price stability goal