Visco warns of danger of revising wages down if inflation undershoots predictions

Ignazio Visco
Ignazio Visco

Recent Italian pay settlements may increase the danger of a downward spiral in wages, the Bank of Italy governor warned on April 7.

Some pay settlement contracts in Italy have "agreed that parts of future pay rises will be revised downwards" if inflation falls short of current forecasts, Ignazio Visco told an audience in Frankfurt.

This could have serious effects on the European Central Bank's (ECB) attempts to restore eurozone inflation to just under 2%, he argued.

According to Bank of Italy's

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: