However, in the light of the ongoing financial market turmoil, more rigorous thinking about banks’ risk taking and risk mitigation could be on the agenda for the years to come. In my speech tonight, I will talk from a euro area and ECB perspective. First, I will elaborate on the economic outlook for the euro area.
Second, I will explain the clear distinction that we at the ECB, as well as many other central banks, make between our decisions on the level of the key interest rates and the provision of liquidity to banks.