Interest rate hike threatens Italy and could spread to southern European countries
According to a study by the Economist Intelligence Unit (EIU), released this week, the ongoing monetary tightening could drag Italy down and, with that, trigger a new wave of financial stress, with contagion to several sovereign countries in southern Europe, in particular ” the most indebted”, warn the authors of the work entitled Global Monetary Policy in 2023.
The ECB, chaired by Christine Lagarde, should almost certainly raise interest rates again at its meeting next Thursday (the 2nd).
Portugal is never mentioned directly in the study. Lately, the country has even been praised for managing to reduce the deficit and public debt, while at the same time showing some resistance against the effects of the inflationary and energy crisis.
So far, it has avoided a recession, and it looks like it will manage to escape one earlier this year. The same will not happen with several countries of the European Union (EU).
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