It is important to take the opportunity the crisis offers and bear in mind the lessons we have learned so far: enhanced regulation, coordination and transparency will ensure a sustainable long-term functioning of financial markets and help prevent such a global downturn in the future.
Global financial markets are still nervous, but tension has eased. Although firms’ financial positions have been weak, the environment for external funding, such as the issuance of CP and corporate bonds as well as bank borrowing, has remained accommodative. That said, there are high uncertainties over the outlook for economic activity and prices, and the Bank recognizes that risks are skewed to the downside.