Conclusion To conclude, working through the aftermath of a financial cycle requires a comprehensive response. Monetary policy will play its part for as long as needed, which means the full implementation of the asset purchase programme and, if necessary, adjustments to its size, composition and duration.
And by meeting our objective, we support growth and inflation, which in turn creates the conditions for interest rates to “normalise” once more. But monetary policy can only do so much. It is for other policymakers to address the secular and institutional factors that are preventing a stronger and more sustained recovery. Efforts are now well underway.