In this context, let me point out that what is relevant for measuring monetary liquidity is not the balance sheet of the Eurosystem, but the balance sheet of the euro area banking sector. Only the latter shows the interaction with the real economy. This interaction is captured by monetary and credit data which, despite the recent stabilisation I mentioned earlier, are still very subdued.
If these conditions were to change in a way that entailed upside risks to price stability, the Governing Council would use all the instruments at its disposal to continue delivering on its primary mandate. The ECB’s monetary analysis pillar serves to assess signals coming from developments in money and credit conditions.