Against the backdrop of rapidly receding inflationary pressures and without compromising on our mandate to maintain price stability over the medium term, we have cut the interest rate on our main refinancing operations by 325 basis points since last October. That interest rate now stands at 1.0%, the lowest level since the launch of the euro.
A related key source of uncertainty in the economic outlook is the prospect for a rebound in investment spending. To date, the Federal Reserve's easing actions have spurred the economy most visibly by increasing consumer demand for interest-sensitive items--particularly autos and new homes.