FRANKFURT: The European Central Bank should not dial back its aggressive stimulus measures until the euro zone economy achieves its growth potential and inflation is back at 2%, ECB board member Fabio Panetta said on Monday.

"This evidence suggests that we should avoid withdrawing policy support - either deliberately or by tolerating adverse spillovers - until the output gap is closed and we see inflation sustainably back at 2%," Panetta said in a speech.

"For the ECB, this implies that we will have to maintain very favourable financing conditions well beyond the end of the pandemic period," he added.