Hence the importance, for us, of: (i) assuring our fellow citizens that we are able to ensure price stability and thereby defend their purchasing power; and (ii) convincing firms that the financial environment will continue to incorporate a low level of inflation in the years to come, which will be reflected in medium and long-term market interest rates.
Last Thursday the ECB announced the progressive phasing-out of its extraordinary measures. Does this mean that market conditions are now completely back to normal? Moreover, analysts view the details announced for the 12-month refinancing operation as a signal regarding interest rates. We always said that our non-standard measures – i.e.