Thanks to the context created by forward guidance, we could implement the necessary lowering of interest rates at our meeting of 7 November as a consistent part of the ECB’s accommodative monetary policy geared towards price stability. Forward guidance will retain its role in the future, too. The euro area economy will take time to recover.
Moreover, in the context of globally integrated financial markets, any divergence in economic activity between Europe and the United States will increase the challenges for the communication of monetary policy.