ECB interest rate hike is a concern in eurozone

ECB interest rate increase is a concern in the euro zone, especially in Italy

ECB interest rate hike, Italy is the weakest in the eurozone (19 countries that use the euro). According to the Financial Times, Italy was identified as the member country most vulnerable to the eurozone’s debt crisis.

Nine out of ten economists surveyed said it was a eurozone country with the greatest risk of indiscriminate selling in sovereign debt markets.

Italy’s public debt exceeds 45% of GDP, making it one of the highest in Europe. Italy’s financing costs have soared, especially since the ECB started raising interest rates last summer.

Italy’s 10-year government bond yield was 4.6% last week, nearly quadrupling from a year ago. The Prime Minister of Italy expressed his disappointment at the ECB’s push to raise interest rates.

Italy is heavily indebted, with a high fiscal deficit, and needs additional energy support. Some experts expect the ECB to stop raising interest rates in the first half of this year. Some experts expect the ECB to start rates cutting rates as growth slows.

However, the ECB has shown no signs of stopping raising interest rates any time soon.

Mujtaba Rahman warned of a deeper-than-expected recession. It could put higher deficits and heavily indebted countries under further pressure.

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