Italy Central Bank Head Sees Vaccines as Main Recovery Tool: FT

The uneven pace of Covid-19 vaccinations is the biggest threat to a global economic recovery and could lead to vastly different trajectories for developed and developing nations, the head of Italy’s central bank said in a Financial Times interview.

“The main instrument we have at the moment is neither monetary nor fiscal, it is vaccinations,” Ignazio Visco told the newspaper.

“We need to maintain close international cooperation within the G-20 to avoid that the different stages of the vaccination campaign in the various countries result in excessive divergences of the respective economies,” he added.

Visco also warned against removing Covid support measures too soon.

A G-20 meeting in Italy on Wednesday will focus on how to help developing economies recover, including temporary debt relief and a potential increase of IMF special drawing rights, he said.

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