That is why the Governing Council concluded at its last meeting to thoroughly analyse “the strength and persistence of the factors that are currently slowing the return of inflation to levels below, but close to, 2% in the medium term”, and would re-examine “the degree of monetary policy accommodation.” We have to assess whether, taking the risks relating to our mandate into account, the overall picture in the euro area economy is one of sufficient speed and momentum in growth and inflation for the ECB to meet its medium-term mandate.
Conclusion International financial events over the past nine months have been a source of considerable instability. Risk that was always in the economic environment has belatedly been recognised. The ensuing process of assessing and disclosing losses, finding new capital and de leveraging has been very difficult.