Therefore, I would like to take this opportunity to share some thoughts that, from my perspective as a central banker, I consider fundamental to understanding where we are and how we can contribute to making this goal possible in a sustainable way.
As I said earlier, this shift has reflected market and regulatory pressures following a reassessment of risk. The re-pricing of risk has increased the cost of intermediation from its pre-crisis level, when it was arguably underpriced. This rise in the cost of intermediation is reflected in the increase in lending rates relative to the cash rate.