If the evolution of the inflation outlook supported by incoming data allows a further normalisation of monetary policy, we stand ready to adjust our instruments accordingly. Meanwhile, we will continue to fully reinvest the maturing securities acquired in the context of our asset purchase programmes past the date on which we start raising the key ECB interest rates.
Beginning last summer, this crisis of confidence triggered an evaporation of market liquidity for the instruments concerned and a funding liquidity squeeze for those institutions that were suspected of being vulnerable to them. Second, weaknesses in the “originate-and-distribute” business model of the large banks, primarily in the United States and Europe.