Since the May Report, external financial conditions have been largely affected by the shift in the monetary policies of leading central banks, which are not only slowing the normalisation process, but also announcing additional monetary stimuli.
Thus, the Federal Reserve System lowered its policy rate for the first time since 2008, while the European Central Bank announced it would keep its main rates at current or lower levels at least through mid-2020. This should sustain favourable financial conditions for longer than expected, as well as capital inflows to emerging markets.