Tag Archives: risks

Energy price surge risks pushing EU economy into stagflation

Energy price surge risks pushing EU economy into stagflation

Natural gas and crude oil prices have surged recently amid rising demands and the US’s wider sanctions on Russia. Elevated energy prices could jeopardise the Eurozone’s inflation outlook and push the regional economy into stagflation. ADVERTISEMENT Both crude oil and natural gas prices saw a sharp increase in January amid increasing energy demands and new US sanctions on Russia. Benchmark …

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ECB follows ‘middle path’ on rates as inflation risks remain

ECB follows 'middle path' on rates as inflation risks remain

Eurozone inflation fell to 2.4% in December 2024, but ECB chief economist Philip Lane cautions that services inflation and uneven growth persist. A “middle path” on interest rates and structural reforms is crucial for stability. ADVERTISEMENT The eurozone has made substantial progress in reducing inflation, yet ensuring it stabilises at the 2% target without hindering economic growth remains a critical …

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ECB’s Schnabel advocates gradual cuts, flags Trump’s trade risks

Eurozone sovereign debt crisis? ECB warns of fiscal and growth risks

Interest rates are nearing neutral territory, ECB’s Isabel Schnabel has said, backing gradual cuts amid persistent inflation. She highlighted risks from Donald Trump’s trade policies, noting potential economic shocks for Europe as tariffs loom over export-heavy economies. ADVERTISEMENT Isabel Schnabel, a member of the European Central Bank’s (ECB) Executive Board, has said there is limited scope for aggressive rate cuts …

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Eurozone sovereign debt crisis? ECB warns of fiscal and growth risks

Eurozone sovereign debt crisis? ECB warns of fiscal and growth risks

The ECB warns of mounting eurozone sovereign debt risks in its latest review, citing high debt levels, fiscal slippage, and weak growth. ADVERTISEMENT The European Central Bank (ECB) has raised the alarm over a potential resurgence of eurozone sovereign debt vulnerabilities, as elevated debt levels, sluggish growth, and fiscal slippage converge into a dangerous cocktail. In its latest November 2024’s …

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AI use poses risks to global financial system, standard-setters warn

AI use poses risks to global financial system, standard-setters warn

The Financial Stability Board said the technology could lead to herding, fraud and disinformation, as jurisdictions such as the EU examine the case for further regulation. ADVERTISEMENT Artificial intelligence (AI) could pose a risk to the financial system, international standard-setters warned on Thursday, as they probe an innovation that’s seen significant interest among banks and other financial firms.  Jurisdictions such …

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