ECB Luis de Guindos warned “while the low interest rate environment supports the overall economy, we also note an increase in risk-taking which could, in the medium term, create financial stability challenges”. Though, he also noted that current interest rates are not yet close to the so called reversal rate. That, where low rates actually hamper the banking sector rather than stimulate lending,

Separately, Governing Council member Gabriel Makhlouf warned that “in the euro area we are also seeing protracted weakness. Both hard and soft data for the second half of the year point to continuing, moderate growth,” Additionally, “Brexit represents an enormous change – and transition – for the citizens of Ireland.”


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