In those conditions, the higher expected returns on business investment will make borrowing conditions still attractive even as nominal borrowing costs will tend to rise. From today’s point of view, we are still some distance away from a sustained adjustment.
As we concluded at our last monetary policy meeting, a very substantial degree of monetary accommodation is still needed for underlying inflation pressures to gradually build up and support headline inflation developments in the medium term. Before drawing to a close, let me address one additional issue related to the calibration of the APP, namely the horizon for executing the purchases.