ECB's chief Draghi points to asset repricing, sudden 'rate hike' as main risks

European Central Bank policy is working as intended and the biggest risks to the policy outlook are a sharp repricing of assets or a sudden rise in interest rates, ECB President Mario Draghi said on Saturday.

European Central Bank policy is working as intended and the biggest risks to the policy outlook are a sharp repricing of assets or a sudden rise in interest rates, ECB President Mario Draghi said on Saturday.

He said that specific risks include lingering stability issues in the banking sector or a surprising increase in inflation, which appears unlikely in the eurozone but a more relevant issue in the United States.

On the downside, a risk would be a "snap back" in rates relating to geopolitical issues, such as trade tensions, a renegotiation of EU rules by member nations or infringement on central bank independence by governments, the ECB chief added.