Weighing the relative merits of extra action and conventional policy is not easy and requires a nuanced interpretation of the arguments and the evidence, as well as some hard thinking. Otmar and his colleagues have done this in advancing the case for extra action, and by so doing they have given me a good intellectual workout--and Otmar, I thank you for that.
In the Governing Council’s view, the risks to this favourable medium-term outlook for growth are broadly balanced over the shorter term, while the balance of risks remain on the downside at medium to longer horizons. These relate mainly to external factors, notably potential protectionist pressures, possible further oil price rises, global imbalances and potential shifts in financial market sentiment.