[30] Such analyses show that, in the short run, most euro area banks tend to benefit from higher interest rates, which boost banks’ margins and net interest income due to the slow and partial pass-through of higher rates to depositors. The pass-through of higher rates to deposits, and hence the boost in net interest income, depends on the deposit structure.
I think we will have to get used to seeing GDP growth rates starting with the numbers 2 or 3 rather than 3 or 4 for a time. On inflation, our forecast a year ago for underlying inflation in the four quarters to the December quarter 2004 was 1½ per cent. At our June meeting we had raised it to 2 per cent.