If we have been surprised in the past, it has been either because of sector-specific shocks, or because economic growth was slower than expected and there was more excess capacity than we previously believed. Indeed, the second issue that preoccupied Governing Council was the degree of excess capacity in the economy.
Challenges from the sovereign debt crisis  While the work on a better framework for ensuring global financial stability is in full progress, the European sovereign debt crisis has turned the focus to the foundations on which the stability of our monetary and financial system rest: a sound and competitive macroeconomic base and solid public finances.