Ignazio Visco: Inflation and long-term interest rate

Address by Mr Ignazio Visco, Governor of the Bank of Italy, at the "Analysis: Institutional Forum", Milan, 16 June 2022. 

The views expressed in this speech are those of the speaker and not the view of the BIS.

Central bank speech  | 
20 June 2022

I would like to thank Professor Pinardi for his kind invitation, which gives me the opportunity to discuss with you the sudden shift in the economic outlook following Russia's attack on Ukraine, above all with reference to what is happening on the inflation front, and to how the European Central Bank (ECB) is responding to these changes.

Inflation trends in the euro area and in the United States

Inflation has been increasing sharply at global level for several months now, following the rise in energy prices on the international markets, especially those for oil and gas. How these price rises came about and how important they are in relation to other factors nevertheless differs widely across countries, in particular if we compare the situation in the United States with that in the euro area