Banks’ capacity to absorb losses has been enhanced, with minimum requirement for own funds and eligible liabilities (MREL) being set at EU level, and total loss-absorbing capacity (TLAC) for large banks being set at global level.
It is the medium-term effect of the level of real interest rates, not the number or size of individual changes, that matters for the development of the economy. So once we realised that a significantly lower level was required, our aim was to move there as quickly as was practicable, without unduly unsettling markets. Where does this leave us?