Hey The governor of the Bank of Portugal (BdP) said on Wednesday that the November 2023 financial stability report points to “risks and vulnerabilities” in banking services, as is usual. Furthermore, he warned that the real interest rate will continue to rise in the coming months.

Mario Centeno highlighted at a press conference He expected the cycle of rising interest rates to reverse “in the near future,” “instead of continuing,” given the slowdown in the inflation rate..

But “the real interest rate will continue to rise in the coming months.”BdP governor warned. “We all have to keep that in mind,” he warned.

Risks to financial stability have increased

The Peace and Democracy Party today considered that risks to financial stability due to the recent economic and political crisis have increased, according to the stability report.

According to the Bank of Portugal, the risk growth reflects the increase in interest rates, the slowdown in the economy, and “recent political uncertainty.”

The BDP says the main risks and vulnerabilities to financial stability are pressure on bills, difficulty households and businesses face in repaying debts, and falling house prices.

Today, starting at 11 am, follow the press conference live.@ Bank of Portugal Regarding the presentation of the financial stability report for November 2023.https://t.co/oNHIOiXGOK

— Banco de Portugal (@bancodeportugal) November 22, 2023

Read also: The General Court of the European Union confirms the decision of the Banque Populaire