Ladies and gentlemen,  6/7  BIS - Central bankers' speeches  As the Bank for International Settlements recently put it clearly in a paper on central bank losses: "Unlike commercial banks, central banks do not seek profits, cannot be insolvent in the conventional sense as they can, in principle, issue more currency to meet domestic currency obligations, and face no regulatory capital minima precisely because of their unique purpose.
As best we can judge, inflation expectations appear to be well contained: Measures of longer-term inflation expectations, based on surveys and on a comparison of yields on nominal and inflation-indexed government debt, have remained within the ranges in which they have fluctuated in recent years. Finally, the recent decline in energy prices, if it is sustained, should reduce cost pressures along the production chain.