It preserves the purchasing power of our money and the value of our savings. And it has profound social implications. Stable prices support the weakest members of our societies – including pensioners and the unemployed – who depend on fixed incomes to live. In that sense, a stability-oriented monetary policy is a key component of the Social Market Economy.
These factors, along with the ability of households to tap equity accrued in residential properties, should continue to bolster consumer spending and the purchase of new homes. The recent declines in energy prices are another positive factor in the economic outlook.