Assessing changing trends from an economic perspective, providing independent analysis, identifying risks and vulnerabilities and taking action where we are mandated to do so. This evening I will discuss three long-term issues that intersect across economic and social vulnerabilities: the supply of credit, climate change and demographics.
A broad easing of financial conditions leads to lower funding costs for banks, while asset purchases depress the pricing kernels used in each country to price local credit, in particular the risk-free yield curve. Both lead to lower interest rates for borrowers.