Rising global tensions could have market consequences, Italian debt chief warns

LONDON, June 17 (Reuters) - The latest rise in global uncertainty may have important consequences on world markets and affect inflation and central bank interest rate expectations, Italy's top debt official warned investors on Tuesday.

Davide Iacovoni, Italy's Director General of Public Debt was asked if he expected the difference between Italy's borrowing costs and those of triple-A rated Germany to continue to decrease following a sharp narrowing already this year.

"It is a very uncertain world. Every week it's something unfortunately not positive in the world," Iacovoni told a Financial Times debt conference in London.

"That may have important consequences on markets, on expectations of inflation, on monetary policy and so on. So I think it's very difficult to assess," he added, referring to whether the recent narrowing trend in borrowing costs would continue.