ECB Vice President Luis de Guindos said “the current environment is characterized by a weakening of the macroeconomic outlook and increasing uncertainty, even though the latest indicators point to a stabilization of economic activity.”
He also warned that “the lower-for-longer interest rate environment creates strains on bank profitability with implications for financial stability.” He urged Eurozone countries to considering raising counter cyclical buffers on bank. That would quickly be released in case of an eventual downturn.
