While the positive impact on oil importer countries, and especially households and corporates, should materialize in the medium term, the negative impact on oil exporter countries, particularly on fiscal balances and the exchange rates, is more immediate and could be amplified by the energy export dependence for respective countries.
4  BIS central bankers’ speeches  In a monetary policy context, the lower inflation observed in the euro area, for example, driven in part by the oil price decline, could de-anchor inflation expectations from the ECB’s target.