Given these vulnerabilities, there had been some concern that the shift to less accommodative monetary policies in the major economies and the occurrence of a number of shocks could have resulted in disorderly adjustments in asset prices by exposing “stretched” asset valuations in some markets and “overextended” balance sheets. This did not happen.
To sum up, a cross-check of the outcome of the economic analysis with the signals coming from the monetary analysis confirmed that an ample degree of monetary accommodation is still necessary for the continued sustained convergence of inflation to levels that are below, but close to, 2% over the medium term.