These loans looked to have ticked up in the fourth quarter of 2011, consistent with the reported increase in demand for loans by small firms in the SLOOS.
However, since the review of the ECB strategy in May 2003, the high-level similarities between our two-pillar strategy and inflation targeting are even more striking. In particular, the Governing Council clarified the definition of price stability. As a safeguard against the risks of deflation, it stressed that inflation should remain “below, but close to 2%”, not just “below 2%”, over the medium-term.