The overnight rate will also fall, presumably to levels just above 0.5%. 5. When to stop easing? Finally, let me turn to the last of the three questions on monetary policy loosening: when to stop? This is like asking: what interest rate level should mark the floor of an easing cycle?
How asset purchases contribute to the ECB’s objective With our monetary policy decisions in June and in particular in September, we have transitioned from a monetary policy framework based predominantly on passive provision of liquidity to a more active and controlled management of our balance sheet.