I will then explain the sequencing of policy measures that we will take once the Governing Council judges that policy should be normalised and will elaborate in more detail on three aspects that are more specific to the euro area. The first regards the question as to how the inflation outlook affects the policy normalisation process.
The second point relates to how the monetary policy transmission mechanism in the euro area affects the choice of policy instruments at different stages of the normalisation process. And the third point provides thoughts on how our sequence may interact with conditions in sovereign bond markets and the risks of fragmentation.