Looking ahead, banks expect to further tighten credit standards in the fourth quarter of 2007. The ECB’s monetary policy stands ready to counter upside risks to price stability, in line with its Treaty mandate to maintain price stability as the primary objective of monetary policy.
Under current circumstances, particular caution is required in assessing any potential impact of recent financial market developments on the real economy. Before drawing further monetary policy conclusions, the Governing Council deems it necessary to gather additional information and carefully examine all new data.