The signalling effect of asset purchases has therefore naturally increased in prominence relative to the duration effect. This explains why our decisions three weeks ago to reduce the pace of purchases while extending the horizon left, on impact, financial conditions largely unchanged. Conclusion Let me conclude.
The ECB’s mandate is framed in terms of price stability, as this is the best contribution that we can make to the welfare of citizens. Ensuring price stability is a precondition for the economy to be able to grow along a balanced path that can be sustained in the long run. This is the guiding principle of all our monetary policy decisions.