Economic impact I would like to turn now and talk about how recent events in financial markets may impact on economic developments. The first point to make is that much depends on how market developments and financial conditions evolve from here and for how long the market turbulence continues.
For this reason, it is difficult, at this point, to assess the extent to which activity may ultimately be affected. However, recent developments have not been favourable and increase the risk of a more significant spillover from financial markets to broader economic activity.