Italy’s Economy and Finance Minister Giancarlo Giorgetti said controlling public debt and maintaining fiscal discipline are becoming increasingly important amid the European Central Bank-led cycle of interest-rate increases.
Borrowing costs and market confidence
Giorgetti said higher borrowing costs underscored the importance of maintaining market and investor confidence, supporting the government’s ability to issue bonds and finance its needs efficiently.
The minister’s position links control of public debt to continued investor confidence in Italian government bonds, at a time when higher interest rates are increasing financing costs.
Expectations of continued monetary tightening
Giorgetti’s comments came after the European Central Bank raised interest rates for the second time this year, amid expectations that monetary tightening will continue in the coming months.
Sources told Reuters that the European Central Bank could take a further step in October as part of its cycle of interest-rate increases.
