This is particularly so when the central bank is involved in actions to support financial stability, such as providing emergency liquidity to specific banks or to the financial system as a whole. In principle the distinction between liquidity and solvency problems should guide the actions of the central bank and the government in a crisis.
As regards interest rates, I have nothing to add or to withdraw from what I said before on behalf of the Governing Council – that we trust that our decision to raise our key interest rate from 4.0% to 4.25% will contribute to achieving price stability in the medium term in line with our definition.