(net). Money market spread is the spread between 1 month OIS rates (i.e. EONIA- and CITA-swaps). Monetary policy spread is the spread between Danmark Nationalbank’s CD rate and the ECB’s deposit rate. ​Source: Rio, Thomson Reuters Datastream, Danmarks Nationalbank and own calculations.
The second challenge is the slowdown in the US economy. BIS Review 24/2008  1  The current tightening of credit conditions in the US due to risk reassessment in financial markets and the sharp decline in the US real estate market threaten to exert further downward pressure on investment, consumption, and, consequently, output growth.