ROME (ITALPRESS) – “Monetary policy decisions will have to balance two factors: on the one hand, the weakness of the European economy and geopolitical tensions are dampening consumption and investment, helping to contain inflation. On the other hand, increased uncertainty — mainly due to the sometimes contradictory announcements on U.S. trade policies — calls for caution in the path of lowering official rates.” Governor Fabio Panetta said this in his report for the Bank of Italy’s Annual Meeting in Rome.
“Global uncertainty remains high, fueled by persistent geopolitical and trade tensions. This context penalizes international trade and accentuates the fragmentation of the world economy, contributing to the slowdown in productive activity,” Panetta continued. “The European economy, already marked by stagnation in the manufacturing sector, is particularly affected by these dynamics because of its strong exposure to foreign trade.
-Photo IPA Agency-
(ITALPRESS)
