At the same time, wage dynamics in the euro area have remained moderate over the recent past; our working assumption is that this will continue to be the case, due not least to strong global competitive pressures, particularly in the manufacturing sector. Moderate wage trends have helped to contain domestic inflationary pressure despite strong oil price increases.
EMEAP has engaged itself in the project known as ABF, or Asian Bond Fund. In this fund, eleven EMEAP central banks jointly set up their foreign reserves to place investment funds composed of Asian sovereign bonds. The purpose of ABF is to stimulate turnovers in the bond market in this region.