Interest Rate in Italy
Italy - Interest Rate
Italian government agrees austerity measures with European authorities
The Italian government stepped up measures towards fiscal consolidation, in order to quell market concerns regarding the need of a bailout by European economic authorities. At the 26 October Euro Summit in Brussels, Italian authorities presented a letter of intent announcing an agenda of structural reforms aimed at reducing budget spending and boosting the country's competitiveness. The plan includes increasing the retirement age to 67 years for both men and women, looser labour market regulation to make layoffs easier and a program of public asset dismissals worth EUR 15 billion over the next three years. In addition, the Italian government agreed to draft a set of growth-enhancing measures aimed at improving the country's growth prospects by 15 November, although only a few details were provided regarding the actions to be taken. Existing tensions among the governing majority do not bode well for the Berlusconi administration's ability to implement the measures agreed upon with European authorities, as the government lacks the necessary power base to push unpopular reforms. During government consultations on the eve of the 26 October Euro Summit, the Northern League party - the main ally of Berlusconi's People of Freedom Party (PdL, Popolo della Liberta) - had roundly opposed raising the retirement age as required by EU officials, and agreement between coalition allies was reached only a few hours before the Euro Summit. Events taking place earlier in the month had already proved the fragility of the existing coalition. On 12 October, the Chamber of Deputies failed to approve the government's 2011 budget, after earlier approval by the Senate. Key to the result was the absence of Economy Minister Giulio Tremonti and of other important elements of the governing majority during the vote. Failure to approve the budget triggered a confidence vote on 13 October, which the Berlusconi administration won by the narrowest of margins. Adding to the bleak picture, international rating agencies Moody's and Fitch both downgraded the country's credit rating. On 4 October, Moody's cut Italy's rating by three notches, to A2 from Aa2, while Fitch followed suit a few days later, on 11 October, downgrading Italy's sovereign debt to A+ from AA-.
Italy - Interest Rate Data
|Policy Interest Rate (%)||0.25||0.05||0.05||0.0||0.0|
5 years of economic forecasts for more than 30 economic indicators.
Italy Interest Rate Chart
Source: European Central Bank.
|Bond Yield||2.56||-0.11 %||Jul 13|
|Exchange Rate||1.17||0.65 %||Jul 13|
|Stock Market||21,892||-0.99 %||Jul 13|
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
Start Your Free Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
July 11, 2018
Industrial output expanded 0.7% in May on a month-on-month, seasonally-adjusted basis, contrasting April’s revised 1.3% contraction (previously reported: -1.2% month-on-month).
July 2, 2018
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) came in at 53.3 in June, above May’s 52.7.
June 28, 2018
According to provisional data released by the National Statistical Institute (ISTAT) on 28 June, consumer prices rose 0.3% month-on-month in June, mirroring May’s reading.
June 27, 2018
The consumer confidence index released by the National Institute of Statistics (ISTAT) rose to 116.2 points in June from a revised 113.9 points in May (previously reported: 113.7).
June 27, 2018
The National Institute of Statistics (Istat)’s composite business confidence indicator (Clima di Fiducia delle Imprese Italiane, IESE)—which covers the manufacturing, construction, services and retail sectors—rose to 115.4 points in June, above May’s revised 114.6 points (previously reported: 114.7). June’s strengthening came on the back of an improvement in sentiment in the retail trade and market services sectors.