The level of the deposit facility rate can also empower the transmission of APP, not least by increasing the velocity of circulation of bank reserves. In making our assessment of the risks to price stability, we will not ignore the fact that inflation has already been low for some time.
Looking forward, monetary policy will remain accommodative for as long as needed to secure a sustained adjustment in the path of inflation. That means we want to feel suitably confident that inflation will not only converge to, but also stabilise around levels close to 2% over the relevant medium-term horizon.