movements in lending. however, we should not forget that money is a long - term indicator, while the other credits are an indicator that moves in line with the business cycle. in response to past increases in interest rates, a transfer from sight deposits and savings deposits to higher - yield term deposits is underway. consequently, the m1 and m2 monetary aggregates, which do not include term deposits, are declining. m3, which incorporates all types of deposits, is registering very moderate growth compatible with more stable inflation in the medium and long term. risks associated with the inflation outlook as usual, our assessment of the inflation outlook is embedded in the baseline scenario that we consider the most probable future development. however, the uncertainties associated with the scenario are greater than usual. this is due to a convergence of various trends with differing effects on the economy. first of all, there are a number of events that could slow down the economy, thereby moderating inflation. a deterioration in the international growth outlook associated with a widening of the impact of the crisis in the us real estate market should be placed in this first category. if the resulting slowdown in the growth of the swiss economy remains moderate, this would reinforce price stability. however, a substantial slowdown would necessitate a change of direction for us. next, there are some developments that could simultaneously slow the economy and threaten price stability. an example of this, if it were to prove persistent, is the rise in oil prices. in this respect, monetary policy finds itself in a dilemma and care needs to be taken in order to prevent prices from spiralling out of control. finally, there are developments that could stimulate economic activity – which is already at a high level – as well as exacerbating inflationary risks. in this category we should mention a possible continued weakening in the swiss franc. to date, the depreciation of the currency has mainly stimulated the economy without pushing up prices. negative effects on inflation have been limited due to productivity gains, the opening up of the labour market and the appearance of new international competitors. the concurrence of these contradictory risk factors makes a global evaluation difficult and encourages the adoption of a prudent and watchful attitude. monetary policy decision we have decided to leave the current libor target range unchanged and to continue aiming for the middle of the range. this decision is based on the following considerations. our analyses show that, following the slowdown in the global economy, the outlook for inflation has improved

cannot be resolved by adequate capitalisation. it is not surprising that such considerations are made primarily by central banks. after all, liquidity concerns are typical for central banks. on the macro level, maintaining the supply of liquidity is a monetary policy task. on the micro level, however, it is the task of each bank to bring its solvency into line with the risks. this requires that the liquidity risks be correctly assessed and managed, and that assets, which can if necessary be used as collateral, be made available. the central banks and supervisory authorities of the g - 10 countries should, therefore, increasingly focus their attention on minimising liquidity risks. this is of particular relevance to banks that are systemically important and internationally active. integrated financial market oversight : what now? in the meantime, the federal council decided on the further procedure regarding the federal act on financial market oversight ( finma act ). the federal department of finance will prepare a statement by the end of next year and submit it to the federal council. the statement shall comprise the first two parts of the report by the zimmerli expert commission ( on the creation of integrated financial market oversight and sanctions ). the third part of the project ( examination of expanded prudential oversight ) will be dealt with at a later point in time. the federal council has taken various concerns of the national bank into account. as regards the division of tasks between the supervisory board and the management board in particular, the federal council has moved closer to the view held by the national bank, which believes it important that the power of disposition remains with the management board. as a non - professional body, the supervisory board is inevitably faced with conflicts of interest, which could prove an obstacle to individual dispositions. however, the experience and know - how of the supervisory board can be fully exploited with regard to the deliberation of questions of principle, budget and important staff issues. furthermore, we support increased budgetary autonomy of the federal financial market oversight authority ( finma ), as we are convinced that a financial centre that is as complex and significant as the swiss financial centre requires an authority with a supervisory and management board whose powers are equal to those of the corresponding bodies of banks and insurance companies. the national bank backs the project regarding the finma act. we continue to view the integration of financial market oversight as a means to improve oversight rather than as an end in itself. should it emerge in the course of work - either with regard