Also in Spain, the squeeze on unit margins is not only due to low interest rates, but is also the result of competition. Part of this may also be due to the fact that the banking sector in the euro area has not undergone sufficient consolidation.
Specifically, we need to strike the right balance between the risk of prolonging unacceptably high inflation and the risk to the medium-term outlook for inflation posed by the rapidly deteriorating economic situation, as we must also be aware that, in the event of a more serious worsening of economic conditions, financial stability risks would further endanger price stability.