On top of this, in July ECB President Mario Draghi provided forward guidance on the ECB’s future monetary policy stance, indicating that key interest rates would remain at present or lower levels for the foreseeable future. Though the design details of these monetary policy measures are debatable, the action itself was essentially correct.
However, the longer the phase of low interest rates continues, the blunter the loose monetary policy instrument becomes; risks to financial stability increase and the exit becomes more difficult. The Eurosystem also intervened in the government bond markets, however, and raised the prospect of further interventions subject to certain conditions. You will be aware that I take a critical view of these steps.