In the following period, as signs emerged that the slowdown in economic activity was significant, pointing in the direction of a further decline in inflationary pressures, the Governing Council again cut the key rates in November 2001, bringing the total reduction of the key rates in 2001 to 150 basis points.
Since then, economic developments, which point to a gradual economic recovery in the euro area in the course of 2002, have been largely in line with the Governing Council's expectations, and we consider the current level of the key ECB interest rates appropriate to maintaining price stability over the medium term.