Assuming that the ample slack would continue to be a drag on investment and employment, recent signs of improvement in employment data is not expected to turn into a significant recovery, suggesting that the unemployment rate will likely remain elevated for an extended period. Therefore, unit labor costs and domestic demand would continue to support disinflation. Distinguished Guests, As I have mentioned earlier in my speech, the tightness in credit conditions have been moderating since the publication of the July Inflation Report, owing to the improvement in global liquidity conditions and risk perceptions. Easing financial conditions and declining loan rates have been strengthening the expansionary impact of monetary policy. The October Inflation Report had stated that the credit channel would begin to support domestic economic activity during the fourth quarter of the year. In fact, credit demand started to recover in this period, especially with commercial loans picking up significantly. However, the effectiveness of the credit channel in supporting economic activity is still partly restrained owing to the ongoing tightness in lending standards for small- and medium-sized enterprises. 12  BIS Review 31/2010  It is expected that the credit channel would continue to support domestic activity, and the impact of cumulative rate cuts would become more prevalent over the medium term. However, the rising domestic borrowing requirement of the public sector, ongoing problems in the global economy, and elevated levels of unemployment would continue to restrain credit expansion. Overall, recent data releases have shown that economic activity is on a gradual recovery path.
and House of Lords, Central bank digital currencies: a solution in search of a problem? iv Lagarde, C. and Panetta, F. (2022), Key objectives of the digital euro i  ii