The minimum LCR will increase gradually in the coming years, so as to ensure that the new liquidity standard will not hinder the ability of the global banking system to finance recovery. And countries with distressed banking systems will have flexibility in its application. At the behest of the G-20, the FSB has promoted initiatives to strengthen the regulation of the OTC derivatives market.
This credibility can only be built up by the Bank achieving the inflation target and having a proven track record of maintaining low inflation. For this reason we are determined to achieve the inflation target. The benefits to the economy will not only be higher long-term growth, but also lower short-term output costs in reacting to unexpected shocks in the future.