Assessment of the effectiveness of macroeconomic policies in advanced economies is also an important element. There is already very limited room for deployment of monetary and fiscal policy in these economies. Given these circumstances, when can we expect the advanced economies to return to a full-fledged recovery path, and how robust will this return be?
At today’s meeting, the Governing Council continued its comprehensive examination of monetary, financial and economic developments and assessed new evidence that has become available over the past few weeks. Our conclusion is that risks to price stability appear rather balanced. Against this background, the current level of key ECB interest rates is appropriate.