As a resource institution of the DBCC, the BSP is pleased to provide this Committee with an update on the emerging trends in the monetary, external and financial sectors of the economy, and to present the overall rationale behind the macroeconomic assumptions underlying the 2017 budget. Let me highlight the key themes of the BSP’s presentation.
The ECB will uphold its definition of price stability. One characteristic of the ECB and the national central banks of the Eurosystem is that their activities are oriented towards the long term. In an environment generally characterised by short-term horizons, the ECB’s long-term approach differentiates it from what occurs in both general politics and the private financial sector.