This is  7  of some importance in that it supports domestic incomes, at a point in the cycle when, historically, those incomes have been reduced by global price developments. Then there is the exchange rate.
We, too, have had to take into account movements in financial market spreads and credit rationing in our policy deliberations over the past year, to an extent we would not have envisaged a decade ago. And the crisis has shown what enormous macroeconomic damage can result if financial market participants do not adequately price and manage financial system risks. 3.