Bank of Italy wary of emerging market risk


Financial conditions in the eurozone have improved in the past few months, the Bank of Italy said, in its financial stability report last week, but there are still "considerable" risks to its economic outlook.

The report pointed to a "more pronounced" reduction in the spread on government securities since the third quarter of 2013, which it attributed to the "subsidence of fears of a break-up of the single currency".

Nonetheless, the Bank of Italy warned the prolonged period of low inflation and

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