This also affects us as a central bank: we hold a high stock of low-interest securities with, in some cases, very long residual maturities. The counterpart to these on our balance sheet is mainly short-term deposits of commercial banks. The interest on these is now rising. As a result, this may weigh on our annual results.
The provisions on our balance sheet are available as an initial buffer against potential losses arising from financial risks. 4 Fiscal policy: targeted softening of hardships We have to recognise that the path to price stability is not a sprint but a marathon.