That spread rose more than three-fourths of a percentage point through the first five months of this year, a not insignificant change, though half of that increase has been reversed since. By the nature of the indexed instrument, the spread between it and the comparable nominal rate reflects expected CPI inflation.
Furthermore, supervisory cooperation should also be intensified on a cross-sector basis as the boundaries between financial activities are becoming increasingly blurred and all financial sectors can be affected by market developments. More broadly, all competent financial authorities, including central banks, supervisors and ministries of finance should strengthen their coordination mechanisms for managing crises impacting crossborder financial institutions.