On February 15, according to a report by Jin Ten, Panetta, the executive director of the European Central Bank, said that there is no need to hold back on interest rate cuts. Since the 2% price target is imminent and inflation risks are also decreasing, there is no need to delay interest rate cuts. "Monetary policy continues to exert downward pressure on economic activity and inflation, which is increasingly unnecessary at a time when inflation is close to the target and domestic demand continues to be weak," Panetta said on Saturday. "Less decisive easing of monetary policy could lead to too low inflation in the medium term." Panetta also said that borrowing costs are approaching the neutral interest rate, which will neither restrain nor stimulate the economy. He believes that the downside risks of inflation outweigh the upside risks. US tariffs on European exports are likely to have little impact on eurozone inflation, with the main risk remaining a fall below 2 per cent over the medium term. He also called for policy decisions to be "supported by communications focused on the real economy and the medium-term outlook for inflation". Panetta believes the main threat to price movements comes from energy markets, where prices, particularly for natural gas, are rising amid increased volatility and need to be closely monitored.