T2S fits extremely well into the financial market reform process. It very much complements the regulatory initiatives being pursued by the European authorities to significantly strengthen the Single Financial Market and its infrastructure. T2S will – for the first time – create a single market in the settlement services space.
Monetary policy credibility in several advanced economies has been the cornerstone for anchored inflation expectations, and lower variability of monetary policy outcomes as market participants believe the central bank’s commitment to achieving its policy objectives. However, it should be noted that credibility does not preclude flexibility.