These outcomes appear to be more modest than the predictions of econometric models, estimated on the basis of past relationships when oil-price shocks exerted a relatively large impact on inflation and growth.
Going forward at the national level, the BCL has seen the need to incorporate these ratios into its current risk-based liquidity surveillance framework which relies on a combination of qualitative and quantitative elements. In addition, regular on-site visits and continuous off-site monitoring are currently combined with a five day forward-looking liquidity reporting by banks.