This is the “homework” that we have to do in the euro area, as reaffirmed in the most recent G7 Communiqué. And we are committed to facing up to these challenges so that the euro area can become a key contributor to a more balanced pattern of global growth.
We are one of the first central banks that have had the economic confidence to commence returning interest rates to more normal levels. The Monetary Policy Committee expects to further remove monetary stimulus over time. It is our expectation that the OCR would eventually need to be raised above its neutral rate, conditional on the economy evolving as expected.