Articles
The yield curve and the bank-public debt nexus
For banks, higher rates mean better interest income, but also higher debt servicing costs for households and businesses and a decline in the value of securities held on banks´ balance sheets. In this context, for the first time since the Eurozone Crisis, the bank-public debt…
The financial risks posed by inflation
Rapid monetary tightening in response to persistent inflation carries serious risks for business and consumer borrowers. A higher-than-expected increase in borrowing costs would have significant knock-on effects for private sector financing with the property and mortgage markets particularly exposed following a period of robust growth,…
Spanish economic forecasts for 2022-2023
Despite a weak start to the year and headwinds from high energy prices and double-digit inflation, Spain's prospects for the next few months remain favourable. However, after the end of the tourism season, the loss of consumers´ purchasing power along with more restrictive financial conditions…
The ECB’s policy conundrum
Autores:
Jones, Erik
Higher and more persistent than expected inflation disrupted the ECB’s initial forward guidance from late 2021. As the ECB pivots to unwind stimulus more aggressively to tame inflation, it must minimize fragmentation risk and the disruption of monetary policy transmission across eurozone financial markets.
Are we safe from another housing market crash?
Autores:
Torres, Raymond
As economic prospects deteriorate sharply, there are questions about what will happen to the real estate sector and the housing market. Are we safe from the bubble burst nightmare days that we suffered during the global financial crisis a little over a decade ago?