What matters most for economic decisions is the real interest rate, which is the nominal rate less the expected inflation rate over the relevant time horizon. Importantly, provided medium term inflation expectations remain well-anchored around the 2 per cent target, the Bank can keep real interest rates low even in the face of temporarily falling prices.
The President reminded us in his address of how important it is to cooperate if we want to achieve our Single Market objectives. T2S is a clear example of the very good cooperation amongst stakeholders in the post-trade industry: as of today, the spirit of the project will move on from negotiation to cooperation.