ECB: Higher rates may trigger concerns on debt servicing
|Here are the some of the key highlights from the ECB's bi-annual Financial Stability Review, released this Wednesday.
• Economic growth supporting financial stability but markets vulnerable to a sudden increase in volatility
• Euro area systemic stress indicators have remained low over the past six months
• There is no generalized overvaluation in EZ fin markets
• Re-pricing of global risk premia remains significant
• Over past six months, ongoing economic recovery supported outlook for sustainability of Euro area sovereign debt
• High private, public debt could give rise to debt sustainability concerns in some countries
• Higher rates may trigger concerns on debt servicing
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