5/6  BIS central bankers' speeches  In this context, we also need to reflect again on how we define solvency. After all, banks need to be solvent in order to receive precautionary recapitalisation. Here, we need to reach a common understanding of how to define solvency, in particular its forward-looking aspect.
This is unlikely to have come as a surprise to many people; the cash rate has been at 1.5 per cent since August last year and financial market pricing suggests market participants expect it to remain there for some time yet. As usual, the reasons for the decision were released shortly after the meeting.