The European Central Bank (ECB) Governing Council member Fabio Panetta said on Saturday that the moment is fast approaching for the central bank to cut interest rates, and timely and gradual steps could help to reduce ensuing volatility in financial markets and the economy.

Key quotes

"The time for a reversal of the monetary policy stance is fast approaching.”

"We need to consider the pros and cons of cutting interest rates quickly and gradually, as opposed to later and more aggressively, which could increase volatility in financial markets and economic activity.”

"What should be discussed now are the conditions to start monetary easing while avoiding risks to price stability and unnecessary damage to the real economy.”

"Any speculation on the exact timing of monetary easing would be a sterile exercise.”

“Inflation is falling as quickly as it rose.”

“Low demand and high inventories reduce the likelihood of higher transport costs being passed on to prices to a significant extent.”