Global economic activity indicators suggest robust growth at the start of 2017, which should further support business investment in the euro area as export demand picks up. One could say we have left behind an environment of elevated uncertainty in a Knightian sense and progressed to one of calculable risks.
In line with the Bank's base-case projection and current assessment of risks, some modest further increase in the policy interest rate would be required to keep aggregate supply and demand in balance and inflation on target over the medium term. BIS Review 4/2006  1