European Central Bank member: Monetary policy is still far from a neutral stance.

ECB policymaker Fabio Panetta made the following statements on Tuesday:

• The European Central Bank is still far from the neutral interest rate.
• If domestic demand remains weak, inflation may fall below the bank's target of 2%.
• The ECB's monetary policy should move to a neutral stance, or even an expansionary one if necessary.
• Economic activity in the eurozone remains weak, and there are no signs of a recovery in the manufacturing sector.
• A tightening bias in monetary policy is no longer necessary.
• The ECB needs to return to a more traditional and forward-looking approach to monetary policy.
• The ECB needs to provide clearer signals regarding its plans for pricing policies in the eurozone.