For the Governor of the Bank of Italy Fabio Panetta there is “a very high level of uncertainty” and “the world is slowing down, with the world Europe is slowing down and with Europe Italy is slowing down.”
“Taking into account the shocks, Italy’s economic performance has been satisfactory”, added the number one of Bankitalia, indicating October 7 among the shocks (war Israel), the difficulties in Red Sea, Ukraine and of energy prices. Just in recent days, the Monetary Fund confirmed GDP growth of 0.7% for Italy in 2024 and 2025.
Panetta then spoke about theuse of frozen Russian assetsstating that it is a “political” choicebut the central banks’ concern concerns the “possible effects on financial stability”. The Minister of Economy also spoke on the same topic Giancarlo Giorgettistating that the possible use of frozen Russian assets is one “particularly complex matter” and what do I want? “non-trivial legal” reflexes which the technicians are examining in view of the G7 in Stresa
Panetta also spoke about the ECB and the prospects of an interest rate cut of the Euro Area, confirming that “disinflation is continuing and this will lead the ECB to reconsider the restriction” of monetary policy. The Governor then reaffirmed the possibility that “June may bring some news”.
“After a year and a half of tightening – he explained – the economy has cooled, inflation is falling and we are simply taking note”.
Tags: Satisfactory Italian growth shocks
