Home » Sansone (iBanFirst): ‘The anti-spread shield will be a perfect black box’

Sansone (iBanFirst): ‘The anti-spread shield will be a perfect black box’

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Sansone (iBanFirst): ‘The anti-spread shield will be a perfect black box’

Yesterday, the European Central Bank raised interest rates by 50 basis points to 0% for the first time in 11 years. As expected, the ECB also unveiled its anti-fragmentation tool, namely the Transmission Protection Instrument (TPI).

The criteria for the ICC are basically four: 1) compliance with EU tax rules. The beneficiary must not be in excessive deficit procedure, for example; 2) absence of serious macroeconomic imbalances; 3) the government’s trajectory must be sustainable; and 4) sound and sustainable macroeconomic policies. It is very likely that Italy will not meet these criteria when the general elections are held in September / October.

“The rate hike pace will be unpredictable in the coming months and this will lead to an increase in volatility on the financial markets – comments Michele Sansone, Country Manager of iBanFirst -. The anti-spread shield will be a perfect black box because the ECB will decide when to apply it, if to use it and how. The following rules only serve to allay any potential legal challenge from the German Constitutional Court ”.

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