Banks’ capital Despite the decline in profitability, banks have maintained capital above the minimum standards. The average ratio of capital to risk-weighted assets was 10.4 per cent for the largest groups at the end of last year. The higher ratios found abroad often reflect massive injections of public capital.
  Core inflation is forecast to remain around 2 per cent over the projection horizon as the economy operates near its production potential, growth in labour compensation stays moderate and inflation expectations remain well anchored.