ECB’s Latest Hike Won’t Help Economy, Italy’s Industry Minister Says

The European Central Bank’s latest interest-rate hike won’t support the euro-area economy, one of the members of Italian premier Giorgia Meloni’s cabinet told Ansa newswire.

(Bloomberg) — The European Central Bank’s latest interest-rate hike won’t support the euro-area economy, one of the members of Italian premier Giorgia Meloni’s cabinet told Ansa newswire.

“This new decision — taken I believe by a majority and therefore opposed by some — will not, I believe, help the economic recovery of Europe,” Industry and Made-in-Italy Minister Adolfo Urso was cited as saying.

This isn’t just a problem for Italy, but also other euro-area economies, he said, adding that “Germany is already largely in recession, and with it, other countries linked to the German system such as the Netherlands.” 

The remarks by a member of Meloni’s Brothers of Italy party are in line with his call ahead of Thursday’s rate decision that the ECB should call a halt to its policy of aggressive interest-rate hikes.  

Higher rates are squeezing businesses and households, and adding to government borrowing costs too. Italian growth momentum has stumbled, with a factory downturn pulling down gross domestic product in the second quarter.

The Italian government has repeatedly attacked the ECB over its rate hikes. 

–With assistance from Craig Stirling.

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