|
"Fears of deflation have abated but the positive effects of the
program observed so far should not weaken our determination to
take it forward," Visco said in a speech to the annual
shareholder assembly of the Bank of Italy.
He said it was vital that inflation be brought back permanently
to the ECB's target level of close to 2 percent. He dismissed
concerns that the ultra-low interest rates created by the ECB's
so-called "quantitative easing" measures could encourage
reckless risk taking on financial markets.
"There are no signs to date that low interest rates are
provoking generalized imbalances," he said.
He also noted that the Greek crisis had so far had only a
limited impact on sovereign risk premiums in the rest of the
euro area, thanks to measures undertaken by governments and the
ECB. But he said the uncertainty surrounding the discussions
between Athens and its international creditors "are fuelling
grave tensions that could prove destabilizing."
Visco, who is governor of the Italian central bank, said the
Italian economy was showing signs of recovery and should expand
in 2015 but he noted that it was still lagging behind the
average for the euro zone as a whole.
He said government reform measures had been recognized by
Italy's partners and on financial markets but said they must
continue and their implementation should be accelerated.
(Reporting by James Mackenzie)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
