Thus, over the past seven months conditions in the euro area money markets have significantly improved and they are virtually the same as, or even better than, those in other major money markets. These favourable money market developments have gradually been reflected in a decline in bank lending rates, especially on short-term credit to the private sector.
Later this week, the Governing Council will assess, on the basis of the latest available information and analysis, the medium-term outlook for and the potential risks to price stability, and, accordingly, will decide on the appropriate monetary policy stance and, possibly, on the implementation of further non-standard measures to foster market functioning.