The impact of a terms-of-trade shock is incredibly complex. While the reduced income means less demand and downward pressure on inflation, the depreciating currency means higher prices for imported goods and services. We’re seeing this in Canada right now. We’ll update our estimates and give a new, full outlook for the Canadian economy in our next Monetary Policy Report in a couple of weeks.
The first results of intense training are visible – the SEPA credit transfer scheme has taken off; 1% of transfers five months after the start is not the critical mass required yet, but new facilities for merchants and corporates are on the way. The SEPA direct debit scheme – clearly the member in the team with a serious handicap.