Central Bank Governing Council member Fabio Panetta said the jump in bond yields will restrain the region’s economy, though isn’t critical as things stand.

Speaking in Turin, the Italian central-bank chief described the moves on debt markets as a global phenomenon, led over the past week by the US, where growth and inflation have surpassed expectations.

“The problem is that in the US, higher interest rates are accompanied by stronger growth, while growth in Europe is less robust,” he said Wednesday. “This is not a crisis, but it is a drag on growth.”Panetta joins other ECB officials in warning that tighter financial conditions could restrict economic expansion, though such a slowdown may also help to contain inflation that surging energy costs have sent to almost double the 2% target.

Policymakers are expected to leave rates unchanged next week. They’re currently in a one-week quiet period before that meeting during which they can’t comment on monetary policy.

Within the 21-nation euro zone, market pressure has focused on France as the bloc’s second-biggest member struggles to get its public finances on a sustainable track.

Panetta said Germany has experienced a smaller rise in yields thanks to stronger public finances. He highlighted France’s persistently high public debt and budget deficits, noting that sovereign-debt tensions can affect borrowing costs in Italy.

“When long-term interest rates rise in the US, we see spillover effects into other markets, including Europe,” Panetta said. “This also affects financing costs in Italy.”