ECB warns array of risks threatens financial system
Luis de Guindos calls on governments to avoid fiscal policies running against tighter monetary policy
The eurozone’s economy is grappling with a growing set of risks that are endangering the financial system, the European Central Bank (ECB) said today (November 16).
Weaker growth prospects, higher inflation, and tighter financial conditions are reducing households’ and firms’ purchasing power, warns the latest ECB’s financial stability review. Additionally, lower liquidity increases the risk of sharp asset price reductions, which could threaten investment funds’ resilience.
Against this
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