Ferrero G., M. Pietrunti and A. Tiseno (2019), “Benefits of Gradualism or Costs of Inaction? Monetary Policy in Times of Uncertainty”, Working papers, No. 1205, Bank of Italy, Rome.
In the current situation, we see that risks stemming from excessive risk-taking or any misaligned asset prices are contained in the euro area. This assessment is supported by continued moderate private sector credit expansion and leverage. However, we have certainly noticed that equity prices have continued to rise – albeit from previously low levels – and that sovereign bond yields are historically low.