You have probably noticed that my discussion of how to recreate risk-sharing mechanisms in the euro area made little mention of the ECB. This is because the single monetary policy can at best support the required reform steps.
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.