Second, an Odyssean element of state contingency that clarifies the Governing Council’s reaction function should it not see “a sustained adjustment in the path of inflation consistent with its inflation aim.” And third, since last December an additional Odyssean clarification that expresses our preparedness to increase the size and/or duration of the APP under certain conditions, i.e.
“if the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation …”. Taken together, the ECB’s current forward guidance encompasses a carefully expounded series of expectations involving both key policy rates and asset purchases.