A bank’s customers can be reassured that, any time they want, they can convert their deposits into cash. Furthermore, cash is universally accessible. Anyone can use it, including people who don’t have bank accounts. Perhaps not surprisingly, then, cash is very important to those who may face challenges accessing alternative payment methods—such as the homeless and those living in remote communities.
Taking into account all the information and analyses that have become available since our meeting on 4 February 2010, price developments are expected to remain subdued over the policy-relevant horizon. The latest information has also confirmed that the economic recovery in the euro area is on track, although it is likely to remain uneven.