(ANSA) – ROME, NOV 1 – “The markets, unnerved by the persistence of inflationary pressures considered ‘transitory’ by central banks, have begun to ‘provoke’ the latter, with upward pressure on yields such as to configure the beginning of the hike in official rates by the end of next year “. This is what Mario Seminerio, professional investor and columnist says about the increase in the spread.
According to Seminerio, the markets are “in open contrast to the official position of the ECB, whose econometric models see inflation still below the 2% threshold in 2022. But, in this context, the forecasts are characterized by high and growing uncertainty, and the fact that other central banks of developed countries have announced the abandonment of QE leads the markets to believe that the ECB will be forced to adapt sooner than expected “. “As for the recovery of the Italian spread, it is precisely to be related to the fragility of our country caused by high indebtedness. Every time market yields rise, we suffer” he argues.
“The current tug-of-war between a central bank and the markets – he underlines – is noteworthy because it breaks the consolidated tradition according to which investors should not fight the decisions of the guardians of monetary orthodoxy. Perhaps the point – concludes the investor – it is precisely that we have gone too far in moving away from orthodoxy “. (HANDLE).
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Source From: Ansa
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