This will support the effective application of the single rulebook developed by the European Banking Authority (EBA) and, therefore, a harmonisation of supervisory standards in Europe. By tackling regulatory arbitrage and removing national bias, confidence in the supervision of banks will be significantly enhanced. The ECB will ensure that strong supervisory standards are applied in a homogenous way across the whole euro area.
Earlier in the expansion, as the economy recovered, the need for highly accommodative monetary policy was clear. But with unemployment low and expected to decline further, inflation close to our objective, and the risks to the outlook roughly balanced, the case for continued gradual increases in the federal funds rate is strong.