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ECB’s Praet: There is very limited spillover from Italy so far

Additional headlines crossing the wires from the ECB Chief Economist Praet’s speech in Frankfurt.

There is very limited spillover from Italy so far.

Loosening of Italian fiscal policy will be neutralized by tighter financial conditions.

Growth risks are balanced.

But the extremes in risks assessment are bigger than earlier.

Investment decisions in Italy have been impacted by severe tightening in Italy.

Tightening of conditionsise unsustainable.

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