The CDS spreads and yields of sovereign debts in the euro area have increased substantially during the recent period. The inter-bank LIBOR market has been witnessing growing stress in terms of declining volume, rising rates and shortening of tenor of lending. The USD LIBOR-OIS spread and EURIBOR-OIS spread have widened significantly implying increased counterparty credit risk premium.
2  BIS central bankers’ speeches  in April 2016, up from 4,3 per cent ten months earlier. Food inflation is forecast to peak at 12 per cent in the final quarter of this year.