These revisions were mainly influenced by a weaker exchange rate path, higher international oil prices, and higher average wage growth. Inflation is expected to remain within the target range over the forecast period. Yet this „baseline scenario‟ only tells part of the story.
It includes three new European supervisory authorities (ESAs) for banking, insurance and securities markets – which aim to strengthen micro-prudential supervision – and the European Systemic Risk Board (ESRB) responsible for macroprudential oversight.