The normalisation of money market conditions goes hand in hand with unstable rates because there is more need to improve the health of the banking sector. Much has already been achieved.
It was an unexpected, deep and costly event, the world’s worst since the Great Depression. The recovery is mixed, fragile in some places and has a long way to go. Just as we were very uncertain about the depths of recession, so no one can be sure how robust and widespread the recovery will be. Already we have had many surprises.