The assessment is based on the share of the debt held by families with particularly tight budgets. Most families have robust finances and are resilient to negative events such as a strong increase in interest rates or a protracted period of unemployment if they reduce consumption or savings, although this may entail considerable lifestyle changes.
And this assessment does not even take into account that a continuous rise in interest rates is very likely to go hand in hand with an economic recovery and hence better employment opportunities. Obviously this assessment of the risk to financial stability does not rule out the possibility that higher interest rates could have rather unpleasant implications for families with very tight finances.