Stress-testing excercises aimed at testing further enhancing system’s effectiveness in addressing a crisis situation
But rate hike is expected at the bank’s Oct. 5 meeting
Unexpected move deemed necessary to bring CPI inflation back to the target in the medium term
Objective is to allow the harmonized settlement of securities transactions in euros
More rate hikes may be on the way as the ECB considered a 50 bps move
But the ECB points out that the shock absorption capacities of European financial institutions have been improving
Tightening cycle expected to continue
25 bps hike likely to come in March
Low rates remain a challenge to profitability
Risk management systems have improved, ECB says