Italy introduces surprise windfall tax on banks' interest rate profits

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Italy introduces surprise windfall tax on banks' interest rate profits
Danmark Seneste Nyt,Danmark Overskrifter
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The decision to impose the tax comes following accusations that chains have been failing to pass on higher rates to savers. There have been calls for similar measures to be introduced in the UK.

It also follows complaints from the Italian government over the European Central Bank's decision to keep rising rates.

Inflation slowed to 6.4% in Italy last month - as the ECB hiked its benchmark deposit interest rate to 3.75%, the ninth consecutive rise in a row., but there has been no indication that ministers will introduce a similar tax here.The Bank of Englandlast week and warned rates were likely to remain high as part of efforts to bring down inflation.

The Financial Conduct Authority has warned it will"take action" against banks that cannot provide a justification for low interest rates. Campaigners in the UK welcomed the decision by Italy's government. Positive Money, which has called for higher taxes on banks in the UK, said on social media that it was"delighted" and urged ministers to follow suit.

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