The Eurosystem begins asset purchases, with positive effects on the markets
The expanded asset purchase programme has been launched by the Eurosystem and has already had a significant impact on the financial and foreign exchange markets. The programme is designed to dispel the risks inherent in a prolonged period of low inflation; to this end, it must be carried out resolutely and implemented in full.
In Italy the signs are more favourable but are not yet consolidated
The favourable cyclical signs have strengthened in Italy, although the upturn still needs to find a firm footing. The most recent surveys have found that households and firms expect employment prospects to improve moderately in the next few months, possibly thanks to the social contribution relief introduced in January and the provisions of the Jobs Act, which went into effect in March.
The expanded asset purchase programme can stimulate economic activity
The Bank of Italy will buy about €130 billion worth of Italian government securities, €150 billion including the operations of the ECB. The programme could spur economic activity; overall, assuming its full implementation, GDP growth should exceed 0.5 per cent this year and be around 1.5 per cent next year. However, a further improvement in household and business confidence remains indispensable.
