Economics and finance

Visco: "Economic uncertainty is very high, beware of judgments"

The number one of Bankitalia: "The risks of the real economy are beginning to be felt and banks are more cautious at European level, not only Italian"

13/05/2023

Dario Marchetti

"If there is one thing I would recommend is to be careful how we judge" the outlook on future monetary policy moves, "there is a very high level of uncertainty" due to the "war not yet concluded", the "energy dimension that for now has returned to the level of costs" and the "global fragmentation, with the tension with China requiring a diplomatic effort": this was stated by the governor of the Bank of Italy Ignazio Visco to the microphones of Rai News 24 on the sidelines of the G7 in Nigata, Japan.

"The risks of the real economy are beginning to be felt and banks are more cautious at European level, not only in Italy." Visco said that the slowdown in credit to firms and households is the answer to two issues: the increase in rates, which has acted on demand, and "the supply of credit linked to the financial tensions that have emerged in the last period, which Europe has absorbed without serious difficulties but the risk has remained".