ECB's de Guindos says high market valuations, private credit and fiscal policy are among the financial stability risks; monetary policy must be prudent, should keep a cool head

De Guindos' remarks highlight growing concerns over financial stability risks driven by high market valuations and private credit.

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ECB's de Guindos says high market valuations, private credit and fiscal policy are among the financial stability risks; monetary policy must be prudent, should keep a cool head

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Context

His call for prudent monetary policy indicates the ECB's caution amid potential overheating, suggesting that any shifts in policy will be measured and focused on maintaining stability rather than aggressive changes. This aligns with a cautious market sentiment and may influence fixed income and EUR movements as investors assess the implications for future rate paths.

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