Inflation is seen to be manageable over the policy horizon, even as the inflation path has somewhat moved higher. The left hand side of the screen lists the potential price risks.
Only a strong and stable banking sector can withstand crises and provide sufficient funding for economic growth. It is also a necessity for monetary policy transmission. After the global financial crisis, banking supervision was overhauled and profoundly reformed. Cooperation between regulators and central banks was reinforced. The concept ‘systemic’ was introduced, and a new policy field, macroprudential policy, was created.