The Governing Council has stated that “they are intended to be carried out until endSeptember 2016 and will in any case be conducted until we see a sustained adjustment in the path of inflation which is consistent with our aim of achieving inflation rates below, but close to, 2% over the medium term.” With this forward guidance, we, i.e.
It is important also to recall that, as indicated a moment ago, we can not control the mix of monetary conditions. This was very clearly indicated between September 1996 and March 1997. Over that period, 90 day interest rates fell from around 10 percent to around 7.5 percent, while the exchange rate rose from around 66 on the Trade-Weighted Index to over 69.