Years of low growth expectations and the continued low business confidence have depressed real productive investment. This lack of investment demand in turn has led to a situation where the natural rate of interest is very low. Monetary policy has had to adapt itself to this situation. This has been necessary in order to pursue price stability.
If monetary policy had not reacted to the decline of the natural rate of interest, price stability would have been at risk, and the situation in the financial sector could be worse than it is now.