ECB’s Mersch Says Monetary Policy Is Forward-Looking

The transcript discusses the interconnectedness of interest rates and quantitative easing (QE) in monetary policy, emphasizing the need for a holistic assessment of policies based on data dependency. It highlights the effectiveness of current monetary policy as a key economic driver, despite limited support from fiscal policy. Concerns about Italy's banking sector and the ECB's supervisory role are addressed, with a focus on maintaining rule respect and resolving potential conflicts between supervision and price stability.

What concerns are raised regarding Italy's banking situation?

What is the relationship between the ECB's supervisory role and its price stability role according to the speaker?