And the link between the spreads at which ABS are traded and the lending rates which banks apply on the underlying credits is probably tight. BIS central bankers’ speeches  3  CBPP3 will further complement the TLTROs and the ABS purchases. Covered bonds share important features with ABS.
As anticipated, annual HICP inflation in July fell further into negative territory, reflecting mainly temporary effects. After a return to positive inflation rates during the second half of the year, we continue to expect price developments to remain subdued over the policy-relevant horizon.