In view of the G20’s commitment, a timely and consistent cross-country implementation of the Basel standards as well as the subsequent enforcement of the new rules are clearly high-priority issues which will pose significant challenges for the authorities and the banking industry alike.
But recent experience suggests we should not lightly dismiss the risk on the other side. Achieving our inflation goal requires firmly anchoring inflation expectations at 2 percent. Following the reopening, there will need to be strong underlying momentum to reach the outcomes in our forward guidance.