In mid-2012, Mario Draghi’s statement that the ECB is ready to do “whatever it takes to preserve the euro,” within our mandate undoubtedly reestablished confidence in sovereign bonds. In response to the crisis, the EU moreover laid the foundation for the banking union by establishing the Single Supervisory Mechanism at the ECB, which is a main pillar of banking union.
The cumulative reduction of 3 full percentage points since January aims to support growth and to keep inflation close to the 2 per cent target over the medium term. Given the many unknowns in the current environment, we will continue to monitor the situation very closely and adjust our outlook in the light of new information. 2  BIS Review 91/2001