The Financial Stability Review also said weak growth was now a bigger threat to the 20-nation euro zone than high inflation.
Rising global trade tensions present a risk to the euro area economy, the bloc's central bank found in its biannual Financial Stability Review out on Wednesday.
The European Central Bank also said weak growth was now a bigger threat than high inflation in the 20-nation euro zone .Rising global trade tensions present a risk to the euro area economy, the bloc's central bank found in its biannual Financial Stability Review out on Wednesday. While Donald Trump's victory in the U.S. presidential election is not specifically mentioned in the ECB release, countries around the world are bracing for his plan to impose blanket 10% tariffs on all imports to the U.S., which also proposes much higher rates for some nations, such as China. Economists say the knock-on impact of implementing these measures couldTrump tariffs to push down U.S.
"Rising global trade tensions and a possible further strengthening of protectionist tendencies across the world raise concerns about the potential adverse impact on global growth, inflation and asset prices," the Financial Stability Review said.
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