Instead, I would argue, our success can be attributed in good measure to the ECB’s monetary policy strategy and the more general principles which underlie our policy making. Not least, it has been a reflection of our philosophy that markets are powerful, sometimes overwhelmingly so, but nevertheless in need to be guided by a central bank, not meddled with.
The Governing Council of the ECB has cut the main refinancing rate by a cumulative 325 basis points since last October bringing it to its lowest level on record at 1 per cent. This has had a very significant effect in lowering borrowing costs for households and firms across the region, including here in Ireland.