Lagarde Says Economic Slowdown, Inflation Pose Risk to Stability

Financial stability in the euro area is at risk from an economic slowdown and inflation that’s spreading to more and more sectors, European Central Bank President Christine Lagarde said.

“Weaker economic growth, higher inflation and tighter financing conditions put pressure on the debt servicing capacity of companies and households,” Lagarde said in a statement at the meeting of the International Monetary Fund in Washington.