Journal of
Italian
Banking
Association

year 100
 

Archive » February 2023 » Inflation and economic policies: the outlook for the economy and banks

Inflation and economic policies: the outlook for the economy and banks

Ignazio Visco
February 2023 - n. 2
Keywords: Congiuntura internazionale, banche, mercati
Jel codes: G21, G28

The world economy is weakening, suffering from high inflation, driven by higher energy prices. In the euro area, the normalisation of monetary policy launched since December 2021 has been aimed at curbing price acceleration, with important steps forward, as evidenced by real interest rates returning to slightly positive levels after the largely negative figures of recent years. In continuing cautiously the restrictive action, the effects of the measures taken will have to be assessed carefully. In Italy, the consequences of policy rate hikes appear manageable for households and firms; the same applies to public finances, but a prudent stance of fiscal policies remains necessary to contain risks to financial stability and productive activity. These will have to be carefully considered by intermediaries, even if their conditions are overall considerably better than in past crisis situations.

Interested in this paper?
Buy the issue