Monetary policy has to recognize these underlying trends and respond to them. If it looks upon these trends as pure transient supply shocks and ignores them, it runs the risk of destabilizing inflation expectations. 9. And now about the second assumption – of supply shocks not usually acting alone to stoke inflation.
The SREP decisions will be finalised in the coming weeks but it has already been publicly said that the Pillar2 capital requirements envisaged for the SSM significant institutions in 2016 are slightly higher than in 2015.