Under the current setup, when bank solvency is put into question, the looming restructuring implies a heavy financial burden for the sovereign, which increases doubt over the creditworthiness of this particular state.
Hence, it will be some time before HICP inflation returns to rates below 2%. The action which we have taken today should be understood as a means of maintaining confidence in price stability over the medium term. As I said at our previous press conference, higher oil prices imply a loss of income for the economy as a whole.