Yet, global factors weigh on euro area growth. 1/4  BIS central bankers' speeches  To be sure, there are tentative signs of stabilisation. Forward-looking indicators have become in slightly more optimistic, as the Purchasing Managers’ Index on manufacturing business expectations in 12 months’ time have increased in the five consecutive months through January to the highest level in 18 month.
I explained earlier that a central bank takes policy action to ensure sustainable price stability in the medium to long term. Such action, however, may not be popular in the short term. What then justifies such action by a central bank? My answer is that accurate research and analysis by a central bank form the basis for the policy decision.