October 13, 2018 / 6:13 AM / a month ago

ECB's Draghi points to asset repricing, sudden rate rise as main risks

NUSA DUA, Indonesia, Oct 13 (Reuters) - European Central Bank policy is working as intended and the biggest risks to the policy outlook are a sharp repricing of assets or a sudden rise in interest rates, ECB President Mario Draghi said on Saturday.

He said that specific risks include lingering stability issues in the banking sector or a surprising increase in inflation, which appears unlikely in the euro zone but a more relevant issue in the United States.

On the downside, a risk would be a “snap back” in rates relating to geopolitical issues, such as trade tensions, a renegotiation of EU rules by member nations or infringement on central bank independence by governments, the ECB chief added. (Reporting by Francesco Canepa Writing by Balazs Koranyi Editing by Shri Navaratnam)

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