The FCI is an average of two alternative FCIs, one in which the weights are derived from the impulse response of HICP inflation to a shock in each of the four financial variables from an estimated value at risk (VAR) model, and the other where the weights are derived from the elasticities drawn from a set of projection models used in the (broad) macroeconomic projection exercise.
The latest observations are for 18 June 2020. The macroeconomic impact of our monetary policy measures By easing the financial conditions faced by firms and households, our monetary policy package provides crucial support to the real economy. In broad terms, this support works along two dimensions: by (i) underpinning medium-term growth and inflation developments and (ii) reducing tail risks around our baseline scenario.