Italy: All bets are off – Rabobank

Sandeep Kanihama FXStreet Contributor

The Italians have rejected a constitutional reform that would have improved the governability of their country notes Research Team at Rabobank.

Key Quotes

“Renzi has resigned and a caretaker government will likely be put in place to reform the electoral law. Early elections will follow, probably between mid-2017 and early 2018.”

“The initial market impact has been fairly muted, while it is just another blow for the economy. We expect economic growth to decelerate from 0.8% in 2016 to 0.6% in 2017.”

“We continue to see the ailing banking sector as Italy’s Achilles’ heel. The odds of a referendum on Eurozone membership haven’t increased after yesterday’s vote. If anything, the chance of a referendum has only declined.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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