Subject to incoming data – we are and should remain data-driven – both the economic outlook and the principles I have outlined justify ending net asset purchases and then gradually exiting negative rates. This would allow us to continue to normalise policy by removing the part of our monetary accommodation that is no longer needed today.
In particular, negative rates may imply distortions which were only necessary and proportionate when inflation was threatening to be too low over the medium term, relative to our target.The first adjustment is already under way.