The ECB contributed to the European action plan through a further widening of its liquidity operations as well as by issuing recommendations on recapitalisations and on the pricing of government guarantees.
The ECB has swiftly and substantially cut the main refinancing rate – four times since October – by a total of 225 basis points against diminishing inflationary pressures and downward risks to the real economy. I think the liquidity policy, government measures and interest rate decisions that have been taken were decisive in breaking the downward spiral in the financial sector in October.