-
Financial Stability Review, May 2022
Financial stability conditions have deteriorated, as the post-pandemic recovery has been tested by higher inflation and Russia’s invasion of Ukraine. Since late 2021, rising inflationary pressures have threatened to slow the momentum of the recovery in 2022. Upside risks to euro area inflation and downside risks to growth rose sharply following the outbreak of the Russia-Ukraine war. In particular, large rises in commodity and energy prices and ongoing global supply chain pressures are expected to prolong the period of elevated inflation. The course and consequences of the Russia-Ukraine war are still hard to ... (full story)