Italian minister warns ECB of risk from higher interest rates

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The outlook for the Italian economy is improving but higher interest rates designed to curb inflation could pose a threat to growth, Italy's economy minister said on Saturday, sending a warning to the European Central Bank (ECB).

"Fighting inflation with monetary policy is not enough, recession cannot be the price paid for fighting inflation," Giancarlo Giorgetti said.

Speaking to the Ambrosetti business forum, Giorgetti confirmed that improvements in the first half of the year would allow Italy to slightly upgrade its official forecast for economic growth of 0.6% in 2023.

 

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