Italy central bank cuts growth and hikes inflation views

The Bank of Italy cut its 2026 growth forecast to 0.6% and raised inflation estimates to 2.6%. The bank cited high energy prices and geopolitical uncertainty.

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The central bank of Italy has lowered its economic growth projections for the coming years while simultaneously raising inflation expectations. This adjustment presents a significant challenge to the administration of Prime Minister Giorgia Meloni, as the revised figures fall short of the government's previously established targets.

Italian Prime Minister Giorgia Meloni during an official meeting at Chigi Palace in Rome. REUTERS/Remo Casilli/File Photo
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