Such anchoring reflects favourably on the smooth functioning of the ECB’s monetary policy and its high degree of credibility, which is based on the principles for sound central banking. Analysing risks to price stability using our two-pillar approach served us well during these times. Let me give you some specific examples of the impact of signals from our monetary analysis on our actions.
[4] This could affect the extent to which we can bring future activity into the present: researchers have dubbed this the “macroeconomic reversal rate”. [5] Before the pandemic, for example, we observed stagnation in households’ intentions to frontload major purchases (see left chart slide 8). The household gross savings rate has increased rather than fallen.