It has also launched a plan to purchase covered bonds issued by intermediaries in the euro area for a total of € billion, with the main objective of easing the financing conditions for credit institutions and firms and of encouraging the banks to maintain and increase lending to their customers.
The Bank of Italy is participating in these purchases in proportion to its share of the ECB’s capital. Following the reduction in the Eurosystem’s official rates, the interest rates on bank loans to Italian households and firms have fallen to the average level for the area, except for consumer credit rates, which remain higher.