In particular, we judge that interest rates will still have to rise significantly at a steady pace to reach levels that are sufficiently restrictive to ensure a timely return of inflation to our two per cent medium-term target.
Prices in financial markets are leaping from one all-time high to the next – the only thing is, volatility is conspicuously low, despite the absence of a consistently robust economic and political backdrop. What’s the story for banks and savings banks? Interest rate risk remains at an elevated level. In real estate business, there are budding signs that institutions are softening their credit standards.