In these circumstances, exports are likely to remain level for the time being mainly due to inventory adjustments in East Asian economies. Meanwhile, imports are projected to continue increasing, particularly for those of consumer goods, and capital goods and parts. Therefore, net exports will decline slightly for a while.
While the study found that financial consolidation has not significantly affected either the conduct or the effectiveness of monetary policy, we also concluded that central banks should remain alert to how future consolidation may affect the competitiveness of the markets that are most important to monetary policy. Central banks should also monitor potential future changes in the transmission mechanisms for monetary policy.