De Nederlandsche Bank NV is the central bank of the Netherlands.

The headline above is via Reuters. Its difficult to disagree with the statement from the DNB really. Even in Japan higher than normal inflation is persisting (though the Bank of Japan keeps telling us its transitory).

The headline comes from the DNB’s Financial Stability Report, which was published today.

In summary:

• Financial stability risks have increased over the past six months. High inflation, rising interest rates, the war in Ukraine and the possibility of a global recession have combined to create an unprecedented situation. Furthermore, inflation may remain high for longer than is currently being anticipated in financial markets and economic forecasts. These developments will put the financial sector to the test in the period ahead. At the same time, it is clear Dutch financial institutions are in a healthy position with solid buffers.