Possible impact from non-EU financial developments – Visco – English

(ANSA) – ROME, MAR 20 – Bank of Italy Governor Ignazio Visco
said Monday Italy may face possible impacts from financial
developments outside the European Union such as the collapse of
Silicon Valley Bank and the rescue of crisis-hit Swiss ban
Credit Suisse.
   
“The financial developments that have occurred outside the euro
area may have an impact and represent a further element of
uncertainty even though the economy has shown resilience beyond
expectations”, he said at the presentation of the new
Affari&Finanza of the daily newspaper La Repubblica.
   
But he said Italian banks would not feel the fall-out from the
Credit Suisse rescue.
   
“Credit Suisse’s problems did not escape the radar. We in Europe
have all the tools to cope with liquidity crises and we do not
detect capitalisation and liquidity problems in our banks”,
Visco stressed.
   
“Bringing inflation back to 2% must be our guiding star,” said
Visco.
   
He said “the direction on rates is clear, and the trend certain
even if it is necessary to act prudently and assess case by case
or as we say in the communiqués, meeting by meeting, on the
basis of available data,” he said after the Euroepan Central
Bank last Thursday hiked rates by 50 basis points but did not
mention other possible rate hikes in its future strategy to curb
inflation. (ANSA).