The tighter fiscal policy is, the greater the room for looser monetary policy. However, an accommodative fiscal policy stance constrains the room for monetary policy to act as the main countercyclical policy. BIS central bankers’ speeches  3  Our own monetary policy reactions have been very much in line with this approach.
The current stance of monetary policy is accommodative in the sense that the real policy rate is negative, around minus one percent, compared with a positive pre-crisis average of around 3,5 per cent.