We are generally satisfied with how these measures are working so far, and we will continue our monthly asset purchases until the end of September 2016, or beyond if necessary, and in any case until we see a sustained adjustment in the path of inflation that is consistent with our price stability objective.
Notably, our asset purchases have contributed to a compression of term premia, which are currently negative according to several model-based estimates. Our measures are also having a positive impact on transmission. Banks’ intermediation capacity is strengthening via the incipient improvement in their asset quality and increased profitability.