But we will do this step by step. Because the tighter monetary policy gets, the more forceful its transmission to output and prices that is still largely in the pipeline. And with each step, the financial system will have to continue adjusting to the higher interest rate environment.
First, the national central banks act as correspondent banks for one another, and take eligible assets in custody for one another’s account. Second, when there are links between the securities settlement systems, assets may be transferred using such links, provided that the links have been reviewed by the European System of Central Banks (ESCB) and judged to comply with ESCB standards.