This objective guarantees an appropriate buffer to counter the above-mentioned drawbacks of very low inflation or even deflationary tendencies. 1 In order to bring inflation rates closer to the stated objective of price stability over the medium-term, and in order to support the aggregate recovery our monetary policy is continuing its accommodative stance.
Our main policy rates will stay low for a prolonged period of time, in line with our forward guidance and the asset purchase programmes will keep our balance sheet expanding until we see a sustained adjustment in the path of inflation. Moreover, in the past months, downside risks to the global economy have increased, due notably to the increasing weakness in emerging markets.