The reaffirmation of monetary policy’s counter-inflationary commitment, the continuation, albeit with pauses, of the efforts to adjust the public finances, and the policy of wage moderation were decisive in easing the pressure and restoring conditions for a stable inflow of capital from abroad.
Looking ahead to a situation of recovery in economic activity and a reduction in the external current account surplus, the diversification of residents’ financial portfolios will not put pressure on the exchange rate if non-residents continue to buy large amounts of Italian securities.