Notes: The intermediation wedge is the distance from the base rate (three-year overnight index swap (OIS), black solid line) to the realised lending rate, as measured by the observed lending rate for non-financial corporations. The margin is the residual between observed lending rates and all other components, including the floor given by the three-year OIS rate.
The stability of the exchange rate, though with healthy two-way volatility, has helped bring more confidence to the international investors to attract long-term investment into the economy as well as to our local corporate to amicably price their goods & services.