The
ECB will raise interest rates again in
order to keep inflation under control.
This was reiterated once again
by the president of the ECB, Christine Lagarde
, clarifying in fact that Frankfurt is continuing resolutely along the path she has long traced.
Commenting on the policy of the European Central Bank, we hear the words of the
governor of Bank of Italy, Ignazio Visco
, who sends a message of confidence to the country's financial and corporate system:
"Italy - he says - will be able to manage" the increases
.
Lagarde: ECB to continue with rate hike
The ECB has "clarified that
interest rates still need to rise significantly at a steady pace to reach sufficiently restrictive levels, and stay there for as long as necessary
".
ECB President Christine Lagarde said this while speaking at a Deutsche Borsa event in Eschborn, Germany.
"In other words, we will stay on course to ensure a speedy return of inflation to our target."
Visco: Italy is capable of managing the rate hike
"Our
country is capable, continuing on the path already undertaken of prudent policies and reforms
, of managing the consequences of a gradual but necessary monetary restriction".
This was stated by the governor of the Bank of Italy Ignazio Viscvo speaking to the Ambrosetti Clib.
According to Visco, "the alarms that are sometimes raised about the effects that further increases in official rates could have on our economy cannot be shared". Visco then recalled how "
the Italian production system has dealt with the economic crisis caused by the pandemic better than it had happened during the global financial crisis and the sovereign debt crisis
". Furthermore, "the levels of debt of our companies are low by international comparison.
Their financial debt stands at around 70 percent of GDP, more than 10 points lower than ten years ago.
In an international comparison, it ranks very low among the advanced economies, in line with the German level and well below the euro area average (respectively equal to 165 and 110 per cent of GDP). accompanies that of households whose financial debt is just over 60 per cent of their disposable income and 40 per cent of GDP, against almost 100 and 60 per cent on average for the euro area".
However, the governor of the Bank of Italy asks again
a "prudent approach" in the normalization of the ECB's monetary policy
.
Visco believes that "the direction of travel can therefore only be the one taken" by Frankfurt in recent months of increases but invites us to balance the risks of inflation that is rooted in expectations and wages and those of financial conditions that are too harsh for families and businesses.
"In other words,
I'm not convinced that it's better today to risk restricting too much rather than too little
", underlines the governor. Finally, Visco underlines the "significant risks" that derive from inflation for households, businesses and for savings. Visco also underlines that "the global economy is experiencing a complicated moment" given "the repercussions of the aggression 'Ukraine by Russia which continue to weigh "on the product which for some weeks has also been feeling the consequences of the further worsening of the health crisis in China".
Governor Visco recalled how "the normalization of monetary policy in the euro area has already taken significant steps".
"
"monetary policy could no longer be, in effect, "the only game in town"
.
isco, government prudence on debt has contained the spread ++
Governor, crucial accounts in order to avoid tensions
ROME
(ANSA) - ROME, JAN 23 - "The recent government measures" on debt and public finances "focused on prudence, have contributed the containment of the yield differential with respect to ten-year government bonds of Germany which today stands at around 180 basis points": This was stated by the governor of the Bank of Italy Ignazio Visco according to whom "maintaining public finances in order and, therefore, reduced deficits and decreasing over time is crucial to avoid financial tensions": For the governor, the rate hikes for public finances are "manageable thanks to the high average life of the public debt and the growth of GDP.
