Today I am going to talk again about interest rate benchmarks, as there have been some important recent developments. 1 These benchmarks are very much at the heart of the plumbing of the financial system. They are widely referenced in financial contracts. For example, the interest rate on a corporate loan is often a spread to an interest rate benchmark.
On the domestic side, investment should benefit from the very favourable financing conditions, the robust corporate earnings currently being observed and ongoing improvements in corporate efficiency. Consumption growth should evolve broadly in line with expected developments in disposable income. Downside risks to economic growth continue to be related to oil price developments and global imbalances.