But we do need a more carefully spelled out monetary policy framework than we have currently. Action on the framework will follow the submission of the Dr. Urjit Patel Committee report, which is expected to submit its report by end December 2013. Second, we have already announced measures to free bank branching, and to incentivise foreign banks to incorporate domestically.
Fiscal policies should support the modest economic recovery and ensure debt sustainability, while remaining in full compliance with the EU’s fiscal rules. With bond yields subject to volatility, high-debt countries in particular need to pay attention to risks related to a reversal of the current low interest rate environment.