{"id":531315,"date":"2026-07-08T13:56:25","date_gmt":"2026-07-08T13:56:25","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/531315\/"},"modified":"2026-07-08T13:56:25","modified_gmt":"2026-07-08T13:56:25","slug":"euro-ecb-cautious-as-euro-area-outlook-stays-fragile-bny","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/531315\/","title":{"rendered":"Euro: ECB cautious as euro area outlook stays fragile \u2013 BNY"},"content":{"rendered":"<p>BNY\u2019s Geoff Yu cites European Central Bank (ECB) Governing Council member Fabio Panetta, who describes a fragile Euro area <a href=\"https:\/\/www.fxstreet.com\/rates-charts\/forecast\" data-fxs-autoanchor=\"\" rel=\"nofollow noopener\" target=\"_blank\">outlook<\/a> with upside inflation risks and downside growth risks. Panetta stresses that policy should not follow a preset path, frames the latest rate hike as recalibration after oil-driven inflation, and says recurring supply shocks may force further adaptation to meet the 2% target.<\/p>\n<p>Panetta flags balanced risks for Euro<\/p>\n<p>&#8220;ECB Governing Council member Fabio Panetta said in Rome that the euro area faces a fragile outlook, with upside risks to inflation still coexisting with downside risks to growth.&#8221;<\/p>\n<p>&#8220;He argued that recent peace talks between the U.S. and Iran could eventually ease energy prices but warned that monetary policy should not follow a preset path.&#8221;<\/p>\n<p>&#8220;Panetta said policymakers must keep a close watch on geopolitical developments, energy markets, supply chains, wages and inflation expectations.&#8221;<\/p>\n<p>&#8220;He framed the ECB\u2019s latest rate increase as a recalibration after earlier oil-driven inflation pressures and suggested that recurring supply shocks may force future policy to adapt to meet the 2% medium-term inflation target.&#8221;<\/p>\n<p>&#8220;Germany\u2019s manufacturing headwinds remain significant, but recent sector surveys have improved, lowering near-term downside risk for <a href=\"https:\/\/www.fxstreet.com\/currencies\/eurusd\" data-fxs-autoanchor=\"\" rel=\"nofollow noopener\" target=\"_blank\">the euro<\/a> area.&#8221;<\/p>\n<p>(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. <a href=\"https:\/\/www.fxstreet.com\/info\/how-fxstreet-uses-ai?utm_medium=internal&amp;utm_source=ai-disclaimer\" rel=\"nofollow noopener\" target=\"_blank\">Know more.<\/a>)<\/p>\n","protected":false},"excerpt":{"rendered":"BNY\u2019s Geoff Yu cites European Central Bank (ECB) Governing Council member Fabio Panetta, who describes a fragile Euro&hellip;\n","protected":false},"author":2,"featured_media":531316,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,184,85,46],"class_list":["post-531315","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/531315","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=531315"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/531315\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/531316"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=531315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=531315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=531315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}