The ECB worries about new risks for market stability

2023-11-22 20:58:10

Published on Nov. 22, 2023 at 6:00 p.m. Updated on Nov. 22, 2023 at 7:58 p.m.

Sovereign rates which have fallen by almost 50 basis points since their peak on October 18, stock market indices which have gained more than 5% in one month… As Christmas approaches, enthusiasm dominates. Perhaps wrongly, according to the European Central Bank.

In its latest report on financial stability, published on Wednesday, the ECB notes that investors are mainly betting on a soft landing for the economy. In other words, they believe that the economic slowdown caused by the central bank’s fight against inflation should not lead to a recession.