The Council has also elaborated, in general terms, the conditions under which it would determine that a “‘threat to financial stability”‘ may exist and the transmission channels through which distress at a firm could affect the broader economy.
Increasing inflation is making financial markets jittery, fuelled by fears of a tightening in monetary policy and rising 1/2  BIS central bankers' speeches  inflation. And that is precisely what we have been seeing on the stock markets in the past few weeks: sentiment is less exuberant, as inflation is again back on investors’ radar.