Instruments such as dynamic loan loss provisions used in Spain and the capital conservation buffer of the Basel III framework, could work as automatic stabilisers that do not require continuous discretionary policy decisions.
While there was more momentum than anticipated in the second half of 2011, the pace of growth going forward is expected to be more modest than previously envisaged, largely due to the external environment.   Household spending is now projected to grow at a steady pace through 2013.