By confirming that rates would remain at their current levels at least through the end of 2019, we extended the period of very low interest rates further by minimising expectations of a rate hike before the end of this year. Of course, the second, state-based leg of our forward guidance continues to provide additional accommodation.
Furthermore, we observed that while bank lending conditions remain very favourable, the weaker outlook could affect the terms and conditions under which banks extend credit to businesses and households.