Summary
The Bank of Italy deems that the countercyclical capital buffer rate in force for the current quarter, equal to zero per cent, is appropriate in the current macrofinancial context.
In the fourth quarter of 2024, the total credit-to-GDP gap, though improving, was still negative by about 11 percentage points, if calculated based on the methodology developed by Banca d'Italia. The bank credit-to-GDP ratio provides similar indications.
The flow of bank lending to the private sector remains weak. The overall NPL ratio is still at historically low levels; the unemployment rate has increased but remains at its lowest level since 2007. In the third quarter of 2024, real house prices rose compared with the previous quarter and the price gap turned positive again.
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