I trust that they can enlighten us more fully about the direction we can practically take in our specific context of a small and emerging economy.
The 3-month EURIBOR rate, which is an important conduit of monetary policy impulses to lending rates, dropped to all-time lows and now stands close to zero. And the policy decisions, in particular those announced in September, triggered a compression of spreads across other asset classes, including ABS, covered bonds and sovereign bonds. The recent sharp compression of ABS spreads since June is particularly important.