Safeguarding progress does not mean defending all aspects of reform at all costs. The FSB is now assessing what is working as intended and addressing any inefficiencies or unintended consequences. The results of its first two evaluations – on the interaction of derivatives reforms and bank capital measures as  14  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  14  well as the impact of G20 reforms on financing of infrastructure investment – will be reported to G20 Leaders in Buenos Aires next month. We need to tailor not taper. It is critical that the process of evaluation and adjustment does not compromise overall system resilience. Addressing emerging vulnerabilities means having the foresight to anticipate new risks from cyber to CCPs, from accountability to asset management. And it means having the discipline to build an anti-fragile system that is robust to the risks we do not anticipate. We will not abolish crises (which have their roots in changes to the real economy and irreducible uncertainty). But we can reduce their frequency and lessen their impact. By resisting the three lies of finance and by voicing truths seldom told, we can build True Finance to better serve our citizens in bad times as well as good.
More fundamentally, the main risks to the inflation outlook stem from potential second-round effects in wage and price-setting behaviour triggered by ongoing oil price rises. In this respect, it is essential that the social partners continue to meet their responsibilities. Against this background, we will continue to monitor inflation expectations very closely. Particular vigilance is required in order to ensure that longer-term inflation expectations remain well-anchored in the euro area. Turning to the monetary analysis, money and credit have continued to grow robustly in the euro area over the last few months, mainly driven by the prevailing low level of interest rates. In particular, the growth of mortgage borrowing remains very strong. In this context, price dynamics in housing markets need to be monitored closely. The liquidity situation in the euro area remains ample by all plausible measures, indicating risks to price stability over medium to longer horizons. In conclusion, oil price developments have again led to upward revisions of inflation projections for the year ahead. At the same time, medium-term domestic inflationary pressures still remain contained, while the balance of risks to the baseline inflation scenario is tilted to the upside. Cross-checking the economic analysis with the monetary analysis confirms the need for particular vigilance in order to keep medium-term inflation expectations firmly anchored at levels consistent with price stability. By achieving this, monetary policy is making a significant contribution towards economic growth and job creation in the euro area.