More specifically, I see three broad implications for the conduct and transmission of our monetary policy, all of which we would need to understand and take into account when defining the appropriate stance for the euro area. First is the effect on exchange rate pass-through.
Nevertheless, economic growth in the third quarter will likely be close to zero or slightly negative, and we will continue to feel the adverse effects into the fourth quarter. With the economic slack that is opening up, we continue to see core inflation falling to about 2 per cent by year-end.