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ECB: Increased risks to financial stability despite decline in systemic risk

FXstreet.com (London) – In its bi-annual Financial Stability Review released today, the European Central Bank said that the risks to global financial stability had increased since its last report.

The report pointed to the potential effects of a changing monetary policy stance from the US Federal Reserve. More hawkish than expected minutes from the Fed’s October meeting suggested that US policymaker may be closer to tapering the central bank’s USD85bn-a-month asset purchase programme than thought. However, recent disappointing labour market statistics could push any tapering well into 2014.

In its report, the ECB said that changes in Fed policy “might be a …read more