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Analysis-ECB’s new tool fails to impress as Italy confronts political paralysis

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Reuters UK

By Yoruk Bahceli and Dhara Ranasinghe AMSTERDAM/LONDON (Reuters) – A new European Central Bank tool to shield indebted states from soaring borrowing costs failed to impress investors on Thursday, with many worried about a lack of detail and conditions that could make it tough for the likes of Italy to use. Unveiled alongside its first interest rate hike in 11 years, under the Transmission Protection Instrument (TPI), the ECB will buy bonds from countries whose borrowing costs relative to Germany it sees as soaring through no fault of their own. For markets, the most pressing need for the TPI i…

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