Economics
Bank of Italy Says Bond Market Has Budget Plan in its Crosshairs
- Director General Rossi says that’s not a way to boost growth
- Budget plan based on GDP estimates that are above consensus
This article is for subscribers only.
Italy’s central bank warned the country’s populist government to tread carefully with investors and said its plans to boost growth with more state borrowing won’t work.
Deputy Governor Salvatore Rossi said that bond markets are ready to turn against Italy if the government pushes them too far, after months of provocation and mixed messages over its fiscal plans. Increasing the budget deficit won’t address the country’s economic problems and risks a market backlash that could make things worse, he said.