European Central Bank (ECB) policymaker Gabriel Makhlouf said on Wednesday, “early signals of the impact of inflation and monetary tightening on borrower resilience are becoming visible among Tracker mortgages, personal loans and certain corporate lending segments.”

"Having said that there is huge uncertainty as to what lies ahead. A large part of monetary tightening has yet to be passed through to the financial system and to the economy; and while some risks are fading, new risks are emerging.” Makhlouf noted.

Meanwhile, ECB chief economist Philip Lane told a conference in Riga on Wednesday that the central bank is seeing some progress in its efforts to push down underlying inflation but this is not yet enough.

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