ECB tells banks to buckle up as Ukraine war hits economy

The sudden surge interest rates is set to make markets more volatile

Eurozone banks were just coming out of emergency measures imposed at the height of the coronavirus pandemic. Picture: Michael Probst

The European Central Bank has told banks to buckle up and prepare for a bumpy road ahead as the Ukraine war hits the economy and a sudden surge in interest rates makes markets more volatile, the ECB top supervisor Andrea Enria said on Wednesday.

Eurozone banks were just coming out of emergency measures imposed at the height of the coronavirus pandemic, including a cap on dividend payouts, when the conflict broke out in February and the economic outlook darkened again.