ECB warns record inflation will create problems for everyone

Amid a slowing economy and officials' desperate fight against inflation, the European Central Bank (ECB) issued a report this Wednesday saying financial stability is in danger. Lenders are at risk of being hit as well as the governments and households.

In its report, the ECB emphasizes, the economic situation has deteriorated so much that some people have lost the ability to pay loans, and corporate profits could substantially decrease.

The report also noted several dangers for public finances. These dangers are related to the fact that the government is borrowing a significant amount of money to mitigate the effects of the energy crisis. Moreover, the report touched on the topic of downward pressure on stocks and the possible halt of house prices.

Vice-President of the ECB Luis de Guindos notes that inflation and a slowing economy have already been noticed by both ordinary people and companies. According to the ECB, financial stability may be shaken, and the Eurozone is likely to experience a technical recession.