As also indicated by the firms taking part in our surveys, growth could be encouraged by the lively trends in investment; consumption may recover more slowly, with a gradual reduction in the high saving rates caused by the pandemic; and goods exports are likely to benefit from the acceleration in foreign demand.
BIS central bankers’ speeches  3  Given the scale of banking in the euro area, even a relatively small difference in funding costs can be consequential. Once again, the Irish situation dramatises what can happen when the two-way feedback loop between banks and sovereign causes a loss of access to risk-free rates.