Benign conditions in financial markets can be reversed, and imbalances are still building up despite some signs of cooling, European Central Bank Governing Council member Christian Noyer will say in a speech today.
"Benign conditions currently prevailing on financial markets can be reversed. Shocks may be coming, which would impact negatively European economies," said the speech notes prepared for delivery by Mr Noyer to a French-Indian financial forum in Mumbai today.
"Despite some signs of cooling, imbalances are still building up, especially in the housing sector, fuelled by a dynamic expansion of credit," said Mr Noyer, who is also Governor of the Bank of France.