Moreover, a relevant share of the EU repo market is constituted by bilateral trades which cannot be easily controlled by a regulatory agency. Such proposals will need to be carefully assessed as regards their impact on the money market and the possible effect on monetary policy implementation. This brings me to my second consideration: should we encourage the use of CCP in repo markets?
The second is volatile and high global prices of oil and other commodities. If these commodity prices remain high for a protracted period of time, it could threaten our inflation outlook. The third is the global financial turbulence. Although the global financial markets appear to have stabilized, we have yet to see the full impact of the US subprime mortgage crisis.