Recent business surveys have been a bit more positive, but surveyed firms are still reporting net declines in new orders and restrained capital spending plans. Our recent survey of bank loan officers reported further weakening of demand for  BIS Review 54/2009  1  commercial and industrial loans.
Monetary policy therefore requires a solid foundation that it cannot lay itself. The second cornerstone of this foundation – in addition to sustainable public ﬁnances – is the independence and the clear mandate of monetary policymakers.