12  BIS central bankers’ speeches  46. So, the challenge for a central bank is to determine if the supply shock is temporary or permanent.
First, the EU needs to address the consequences of the United Kingdom’s departure from the EU. Given uncertainties regarding regulatory divergence, we should not take it for granted that the EU and UK financial systems will retain their current degree of interconnectedness. As I have said before, a degree of decoupling is inevitable.