We stand firm on our intent to take immediate and appropriate measures to ensure that our monetary policy stance supports our price and financial stability objectives. The coming task of the Monetary Board is to carefully evaluate the appropriateness of a measured policy response to firmly anchor inflation expectations in line with our forecast that inflation targets will continue to be met in 2018-2019.
NPLs, however, have declined for fourteen consecutive quarters, representing a 58 percent reduction from the Q4 2013 peak, or a decrease of € billion in gross exposures. Looking ahead, more NPL reductions are expected through further restructuring, recoveries, and loan portfolio disposals.