1.  International monetary policy trends  As you are aware, in many countries growth considerations dominate policy concerns, both on the fiscal and monetary policy fronts. According to the IMF’s latest World Economic Outlook (WEO) Update released last month, the global recovery is expected to continue but at an uneven pace and with the outlook being characterised by downside risks.
The covered bond market is important in our economy and it was vital to re-start and support its functioning. In May 2010 increasing market concerns about the sustainability of public finances led to severe tensions in certain market segments, which were hampering the transmission mechanism of monetary policy and thereby the effective conduct of our efforts to maintain price stability.