Restrictive ECB policies no longer necessary - BoI's Panetta

(ANSA) - ROME, NOV 19 - Bank of Italy Governor Fabio Panetta said Tuesday that the European Central Bank's "restrictive' monetary policies are no longer necessary" and called on the ECB to be clearer about its future intentions.
    Panetta said in a lecture at Bocconi University that, while inflation was "close to target", domestic demand was "stagnant" "We should focus more on the weakness of the real economy at the moment," he continued.
    "Without sustained recovery, there is a risk that inflation will be pushed below target, opening up a scenario that would be difficult for monetary policy to counter and should be avoided.
    "In short, we need to normalise our monetary policy and move towards 'neutral' or even expansionary territory". Panetta added that "the time has now come for the ECB to give more explicit indications of its intentions" on interest rates, so that "its communications provide the necessary guidance to consumers and investors". (ANSA).