With the usual press conference, the European Central Bank presented a plan for future semesters in which, as expected from the start, there will be interest rate increases and a moratorium on quantitative easing. What will happen to countries with high public debt like Italy?
As expected, the result European Central Bank press conference Last week, as plans for the next few months were revealed, has led to growth Spread between BTPs and German Bunds, for the first time more than 230 points. Therefore, the stakes for countries with high public debt are high: but is Italy personally involved, or can we rest assured?
Let’s try to clarify this.
Spreads at 10-year highs: Is there anything to worry about?
Growth in the margins, especially for i Countries with high debt-to-GDP ratios, the so-called public debt, is a direct result of the economic policy introduced by the European Central Bank in its recent press conference. The Cut to Fc and theinterest rates increase It will certainly have tangible consequences for the economies of the most indebted countries.
However, Frankfurt’s response was up in the air, as continuing to turn the taps on by buying and repurchasing government bonds would only complicate the inflation problem. However, reassurances have come from the European Central Bank in this regard.
ECB reassures on spreads: don’t panic
For a question posed to Lagarde On the possible increase in spreads for more indebted countries, the answer was “don’t panic” with a reassuring tone. It is clear that such an important monetary decision at such a complex time for European economies has been considered too much.
It is equally clear, however, that the adjustment phase of the transition between a super-expanding economy like the previous one and a restrictive phase like now will be complex, especially for Countries with high public debt.