(Chart 5 and 6 give an indication of the cost, in level terms, of short- and longer-term borrowing, respectively.) In our October Monetary Policy Report, we estimated that the tightening of credit conditions was worth about 25 basis points relative to our overnight interest rate target.
Even if such an idea might take time to command agreement at EU level, despite current discussions towards an independent fiscal review body, it should certainly be factored in to medium term fiscal planning at national level, to be brought into play when the budgetary accounts have been brought fully under control again in a few years time. BIS Review 143/2010  7