This makes up a very challenging policy agenda for the central bankers, regulators and legislators alike, and for the financial industry. Let us approach it with an open mind for innovation and technology development, but at the same time mindful of financial stability and social inclusion. During the pandemic, there have been other changes, as well.
One is the review of the ECB’s monetary policy strategy that we concluded in July. The review was prompted by historically low interest rates driven by the trend decline in the equilibrium real interest rate, and the limits on lower interest rates as a result of the implications of the effective lower bound for monetary policy.