Bank of Italy Against Ending The Asset Purchase Program?
Bank of Italy’s members said the ECB should be very careful in ending the asset purchase program and monitor any risk of an abrupt increase in interest rates. Italy, as we know, is the weakest economies of the bloc, with a highest public debt. That’s why, the authorities are so concerned with monetary policy normalizing.
Fabio Panetta (one of the Italian central bank's four executive board members) noted: "It's necessary that monetary policy remain expansionary for a long time". “Normalizing monetary policy can be achieved without causing a negative shock for the euro zone economy or the financial system as long as it is done in a context of robust growth and in a gradual way".