MADRID, March 22 (Reuters) - The Bank of Spain warned on
Wednesday that uncertainty about the strength of the global
financial system was likely to weigh on global economic growth
in the coming quarters, although it could also potentially help
ease inflationary pressures.
The central bank said in its quarterly economic outlook that
the financial market turmoil triggered by the collapse of U.S.
lender Silicon Valley Bank and the rescue of Credit Suisse had
generated an adverse shock whose magnitude and persistence are
still highly uncertain.
"In any event, it seems likely that the uncertainty that has
already arisen regarding the strength of the international
financial system will exert some adverse effect on the
development of economic activity in the coming quarters and also
contribute to weakening inflationary dynamics," it said.
(Reporting by Jesús Aguado, editing by Andrei Khalip)
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