MNI BRIEF: Italian Credit Conditions Tightener - BOI Bulletin

Credit to Italy's non financial sector fell 3.2% in February, with an average interest rate of 3.6% of interest rates for new loans -- 60 basis points more than November, according to the Bank of Italy’s Economic Bulletin published on Friday. Credit contraction was seen broadly across the economy, especially in the services sector, with household lending also falling, helped by a slowdown in mortgages.

Tensions seen across the international banking system weighed on overall economic forecasts, but "Italian banks are in a significantly better position than that observed in past episodes of crisis,” the national bank said.

According to BOI estimates, the available data suggest a “slight expansion” in Q1 for the Eurozone and for Italy, with the latter benefiting from lower than expected energy prices and the easing of bottlenecks.