Retail price inflation (on the Government’s target measure) has averaged 2.7% over this period, and has in fact been marginally below the 2½% target for much of the past two years. Short- -term interest rates – which went up to 12% (and tentatively even to 15%) before we left the ERM in 1992 have been stable at 6% for the best part of a year. Helped by a decline in inflationary expectations, UK 10 year Government bond yields have fallen, to around 4¾% which, apart from a brief period at the beginning of 1999, is the lowest they’ve been for nearly 40 years. They are now just about as low as in any major industrial country with the exception of Japan. And the number of people in work has recently been at an all-time high in the UK as a whole - and close to its high point in Scotland; while the rate of unemployment, on a claimant count basis, is at a 25-year low, both in the UK as a whole and in this country. The question remains – can we keep it up? The answer to that question depends on developments both at home and abroad, but let me comment first on the international situation which is currently the focus of a great deal of attention.
The Governing Council did, however, make it clear that the ECB remains supportive of the objectives of EMIR II and is fully committed to contributing to its implementation where legally possible and in line with its mandate. The ECB looks forward to fruitful cooperation with ESMA and other authorities in taking this forward.4 In times of upheaval in global payment markets, it is all the more important for Europe to close ranks. In the United States we have already seen two mergers of two significant payment service providers this year. Both mega-mergers had a market value of $ billion and more could follow. In such dynamic markets, in which economies of scale play a pivotal role, we should not get lost in national details but should self-confidently enhance the conditions of the European single market and the competitiveness of its participants, without, however, putting up protectionist barriers. Conclusions Allow me to conclude. As central banks, we must remain true to our core mandate. Through change or crisis, we must retain the capacity to adapt to evolving needs and do what needs to be done. But that should not come at the expense of independence or accountability. Ultimately, we will be judged on how we deliver price stability. Trust is the central bank’s most valuable asset.5 1 European Central Bank (2011), The monetary policy of the ECB. 2 Eurobarometer, European Commission. 3 Mersch, Y. (2018), “ Virtual currencies ante portas”, speech at the 39th meeting of the Governor’s Club Bodrum,  Turkey, 14 May. 4 Mersch, Y.