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23 Aug 2022 Eurozone Monitor Windfall Taxes are a Risk to the Profit Outlook of EZ Banks

Melanie Debono (Senior Eurozone Economist)19th Aug 2022 09:13Eurozone, Daily Monitor

Higher inflation for longer will lead to higher interest rates, which will support banks’ interest margins.

This implies higher profits, which makes bank equities attractive right now.

But risks to the profit outlook remain in the form of windfall taxes and falling demand for loans.

bank lending bond yields credit current accounts deposit rate deposits ECB ecb policy energy energy inflation euro ez banks gdp growth government interbank interest income interest rate June lending growth loans market expectations May policy policy rates profit margins profit outlook q1 q2 qe refinancing savings short-term rates tltro u.s. yield curve yields

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Keywords for: 23 Aug 2022 Eurozone Monitor

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