BIS Review 148/2010  as the Central Bank’s base case of the prospective losses through to 2012 (against the expectation of which the current capital requirements have been set), the total loan losses come to no less than € billion, or about 55 per cent of this year’s GDP.
So, if we were to see shocks that would lead to the medium-term inflation path being revised upwards, we would change our policy stance to reduce accommodation more rapidly – and vice versa – so as to keep inflation on target over the medium term. Normal does not mean conventional Third, normalisation does not imply adjusting unconventional instruments more rapidly than conventional ones.