FISCO: “Close to the level to stop rate hikes”

Milan – The rate hike may be coming to an end. The Governor of the Bank of Italy confirmed this Ignatius Fiescospeaking at a meeting tofit in in Milan. “We are close to the level where we stop raising interest rates,” he said. He added, “I think we are close to the level where we can stop,” so we must be “careful in directing the level of interest rates in line with the direction of the economy.” At the same time, he noted, the ECB must be ready to act in the event of new shocks: “With regard to the future, it will be necessary to be open to the possibility of action in the event of new unexpected shocks in consumer prices. That can’t be considered a thing but it’s not particularly high today.

“reassuring signs”

The governor said he was optimistic about inflation. “There are signs that reassure us compared to last year: headline inflation has decreased, especially for energy prices,” said Fiesco. He stressed again that “inflation expectations are now around 2%, we are stable” and objectively “interest rates in the medium term are constrained”. “To know the supply and demand levels well,” Fiesco added.

According to the governor, the movements European Central Bank It was inevitable in some ways, but times seem to have changed now. In recent years, also due to the impact of the increase in energy prices, Fiesco said, “there has been a decline in income and the weakest need to be protected. In some European countries, such as Germany and the Netherlands for example, there is a strong increase in the increase in wages.” It was inevitable and trying to contain inflation so quickly, that sometimes I said a lot about “inflation by raising interest rates, but interest rates” went where they were supposed to go.