Last month the ECB reduced their key policy rate to 0.05 per cent and took their bank deposit rate further into negative  BIS central bankers’ speeches  1  territory. A commitment to purchase asset-backed securities from the commercial banks, designed to stimulate bank lending, was also announced.
  The three main upside risks relate to the possibility of stronger-than-expected inflationary pressures in the global economy, stronger momentum in Canadian household spending, and the possibility of a faster-than-expected rebound in business and consumer confidence, due to more decisive policy action in the major advanced economies.