Commodity prices USD, Index 2000 = 100 240  240  Food Other agricultural products Metals Total  220 200  220 200  180  180  160  160  140  140  120  120  100  100  80  80  60  60 00  01  02  03  04  05  06  07  08  09  10  Source: The Economist  10  BIS Review 98/2009  7. Consumer prices USA Annual percentage change 6  6 CPI  5  CPI excluding energy and food  5  4  4  3  3  2  2  1  1  0  0  -1  -1  -2  -2 -3  -3 00  01  02  03  04  05  06  07  08  09  10  Source: Bureau of Labor Statistics and the OECD  8. Real house prices, USA Index 1950 = 100 200  200  180  180  160  160  140  140  120  120  100  100  80  80  60  60  40  40  20  20 0  0 50  55  60  65  70  75  Note. Outcome up to end of Q1 2009.
Inflation will be negative this year, but underlying inflation will be close to the inflation target of 2 per cent. Monetary policy is aimed at dampening the economic downturn. The repo rate was cut to an all-time low of 0.25 per cent in July and is expected to remain at this low level for the coming year. Thank you for your attention! BIS Review 98/2009  7  1. Financial markets functioning better Difference between 3-month interbank rate and expected policy rate, basis points (Basis spread) 400  400 Sweden Lehman Brothers  350  350  Euro area  300  300  USA Secure liquidity prior to year-end  250  250  200  200 BNP  Bear Sterns  150  150  100  100  50  50  0  0  Jan07  Apr07  Jul07  Oct07  Jan08  Apr08  Jul08  Oct08  Jan09  Apr09  Jul09  Oct09  Sources: Reuters EcoWin and the Riksbank  2.