Bank Of Italy Lifts Growth Forecast

(RTTNews) - The Bank of Italy on Saturday raised its economic outlook as the bond purchase programme of the European Central Bank supports the growth potential of member countries.

Gross domestic product is set to expand more than 0.5 percent in 2015, Governor Ignazio Visco said in a speech at the Assiom Forex conference in Milan. The bank had estimated a 0.4 percent growth on January 16.

He forecasts economic growth to exceed 1.5 percent next year compared to the prior projection of 1.2 percent.

Italy is among the countries that are struggling hardest to make a start on the road to recovery, he noted.

The central bank chief, however, cautioned that the forecasts remain subject to high uncertainty related to geopolitical tensions, oil prices and foreign exchange rate.

Lower interest rates and the depreciation of the currency could bring inflation more consistent with the definition of price stability towards the end of 2016, Visco said.