The impact of the ECB hikes on Italian debt

There BCE continues to raise rates and although in today’s meeting it decided on the least aggressive move (+0.25 per cent instead of +0.5) it also makes it clear that there will be no breaks until the summer (therefore another or other two adjustments upwards) pushing market expectations towards a final rate of 3.75 per cent. Whether it was a (temporary) concession to doves or a move that takes into account the return of the new banking turmoil from the United States, the substance is that the central bank led by Christine Lagarde believes that there is still some way to go in the fight against inflation. If, in fact, the latest data from the “bank lending survey” showed a sharp drop in the demand for loans from households and businesses due to the increase in interest rates, thus confirming that the monetary tightening carried out by the ECB is working corrected, inflation remains at high levels in the euro area (up 7 per cent in April).