We are embarking on the SMP to help restore a better transmission mechanism for monetary policy at a time when governments have not yet implemented their decision of 21 July. What will happen when you stop this programme? I already explained how we see this programme and the commitment of the governments to step in individually and collectively.
This poses the risk that term premiums could rise sharply—for instance, if investor perceptions of inflation risks increased. I will return to this risk later. Although asset valuations are elevated, vulnerabilities due to debt owed outside the financial sector appear to be moderate—in the middle of their historical range.