The first reference value was set in late 1998 at an annual growth rate for M3 of 4½%. Following a review of the reference value in December 1999, the Governing Council decided to leave the reference value unchanged on the grounds that the underlying assumptions are still valid.
Under normal circumstances, significant and sustained deviations of actual monetary developments from this value would signal future risks to price stability. However, the reference value is not an annual target. Rather, it is based on medium-term assumptions and serves as a guide for developments over the medium term.