Central Banks
ECB Warns Weak Economy Heightens Stability Risks From Hikes
- Debt-servicing capacity of firms, consumers, states may suffer
- ECB releases Financial Stability Review in Frankfurt
The outlook for the 20-nation euro area has worsened of late.
Photographer: Nathan Laine/BloombergThis article is for subscribers only.
Sluggish growth in the euro-zone economy is threatening to amplify risks to financial stability posed by higher interest rates, the European Central Bank warned.
As the impact of the ECB’s historic monetary-tightening campaign continues to unfold, household incomes, corporate revenues and public finances could feel an additional squeeze if the economy continues to disappoint, the central bank cautioned in its bi-annual Financial Stability Review.